Correlation Between First BITCoin and Halitron

Can any of the company-specific risk be diversified away by investing in both First BITCoin and Halitron 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 First BITCoin and Halitron into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First BITCoin Capital and Halitron, you can compare the effects of market volatilities on First BITCoin and Halitron 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 First BITCoin with a short position of Halitron. Check out your portfolio center. Please also check ongoing floating volatility patterns of First BITCoin and Halitron.

Diversification Opportunities for First BITCoin and Halitron

1.0

Correlation Coefficient

First BITCoin  Halitron

No risk reduction

The 3 months correlation between First and Halitron is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding First BITCoin Capital and Halitron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halitron and First BITCoin 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 First BITCoin Capital are associated (or correlated) with Halitron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halitron has no effect on the direction of First BITCoin i.e., First BITCoin and Halitron go up and down completely randomly.

Pair Corralation between First BITCoin and Halitron

If you would invest  0.01  in Halitron on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Halitron or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.24%
Values	Daily Returns

First BITCoin Capital  vs.  Halitron

First BITCoin Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days First BITCoin Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, First BITCoin is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Halitron

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Halitron is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with First BITCoin and Halitron

The main advantage of trading using opposite First BITCoin and Halitron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First BITCoin position performs unexpectedly, Halitron 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 Halitron will offset losses from the drop in Halitron's long position.

The idea behind First BITCoin Capital and Halitron pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.