Correlation Between Bitcoin and Moatech

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

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

Diversification Opportunities for Bitcoin and Moatech

0.42

Correlation Coefficient

Bitcoin  Moatech

Very weak diversification

The 3 months correlation between Bitcoin and Moatech is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Moatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moatech and 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 Bitcoin are associated (or correlated) with Moatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moatech has no effect on the direction of Bitcoin i.e., Bitcoin and Moatech go up and down completely randomly.

Pair Corralation between Bitcoin and Moatech

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the Moatech. In addition to that, Bitcoin is 1.86 times more volatile than Moatech Co. It trades about -0.09 of its total potential returns per unit of risk. Moatech Co is currently generating about -0.11 per unit of volatility. If you would invest  294,500  in Moatech Co on December 22, 2024 and sell it today you would lose (24,500) from holding Moatech Co or give up 8.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	89.23%
Values	Daily Returns

Bitcoin  vs.  Moatech Co

Bitcoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Bitcoin shareholders.

Moatech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moatech Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Bitcoin and Moatech

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

The idea behind Bitcoin and Moatech Co 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.