Correlation Between Bitcoin and Absalon Invest

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

By analyzing existing cross correlation between Bitcoin and Absalon Invest , you can compare the effects of market volatilities on Bitcoin and Absalon Invest 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 Absalon Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Absalon Invest.

Diversification Opportunities for Bitcoin and Absalon Invest

0.0

Correlation Coefficient

Bitcoin  Absalon Invest

Pay attention - limited upside

The 3 months correlation between Bitcoin and Absalon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Absalon Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absalon Invest 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 Absalon Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absalon Invest has no effect on the direction of Bitcoin i.e., Bitcoin and Absalon Invest go up and down completely randomly.

Pair Corralation between Bitcoin and Absalon Invest

If you would invest (100.00) in Absalon Invest on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Absalon Invest or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bitcoin  vs.  Absalon Invest

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.

Absalon Invest

Risk-Adjusted Performance

Very Weak

Over the last 90 days Absalon Invest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Absalon Invest is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bitcoin and Absalon Invest

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

The idea behind Bitcoin and Absalon Invest 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.