Correlation Between Bitcoin and Strategic Allocation:
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Strategic Allocation: 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 Strategic Allocation: into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Strategic Allocation Moderate, you can compare the effects of market volatilities on Bitcoin and Strategic Allocation: 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 Strategic Allocation:. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Strategic Allocation:.
Diversification Opportunities for Bitcoin and Strategic Allocation:
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bitcoin and Strategic is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Strategic Allocation Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Allocation: 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 Strategic Allocation:. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Allocation: has no effect on the direction of Bitcoin i.e., Bitcoin and Strategic Allocation: go up and down completely randomly.
Pair Corralation between Bitcoin and Strategic Allocation:
Assuming the 90 days trading horizon Bitcoin is expected to generate 2.81 times more return on investment than Strategic Allocation:. However, Bitcoin is 2.81 times more volatile than Strategic Allocation Moderate. It trades about 0.11 of its potential returns per unit of risk. Strategic Allocation Moderate is currently generating about -0.39 per unit of risk. If you would invest 9,665,788 in Bitcoin on October 9, 2024 and sell it today you would earn a total of 557,212 from holding Bitcoin or generate 5.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Bitcoin vs. Strategic Allocation Moderate
Performance |
Timeline |
Bitcoin |
Strategic Allocation: |
Bitcoin and Strategic Allocation: Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin and Strategic Allocation:
The main advantage of trading using opposite Bitcoin and Strategic Allocation: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Strategic Allocation: 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 Strategic Allocation: will offset losses from the drop in Strategic Allocation:'s long position.The idea behind Bitcoin and Strategic Allocation Moderate 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.Strategic Allocation: vs. Baillie Gifford Health | Strategic Allocation: vs. Alger Health Sciences | Strategic Allocation: vs. Deutsche Health And | Strategic Allocation: vs. Hartford Healthcare Hls |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |