Correlation Between Bitcoin Well and OFX Group
Can any of the company-specific risk be diversified away by investing in both Bitcoin Well and OFX Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bitcoin Well and OFX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Well and OFX Group Ltd, you can compare the effects of market volatilities on Bitcoin Well and OFX Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bitcoin Well with a short position of OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Well and OFX Group.
Diversification Opportunities for Bitcoin Well and OFX Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and OFX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Well and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group and Bitcoin Well is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bitcoin Well are associated (or correlated) with OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Bitcoin Well i.e., Bitcoin Well and OFX Group go up and down completely randomly.
Pair Corralation between Bitcoin Well and OFX Group
If you would invest 435.00 in OFX Group Ltd on December 1, 2024 and sell it today you would earn a total of 0.00 from holding OFX Group Ltd or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Bitcoin Well vs. OFX Group Ltd
Performance |
Timeline |
Bitcoin Well |
OFX Group |
Bitcoin Well and OFX Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin Well and OFX Group
The main advantage of trading using opposite Bitcoin Well and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Well position performs unexpectedly, OFX Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OFX Group will offset losses from the drop in OFX Group's long position.Bitcoin Well vs. Arcane Crypto AB | Bitcoin Well vs. OFX Group Ltd | Bitcoin Well vs. Blockmate Ventures | Bitcoin Well vs. Armada Mercantile |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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