Correlation Between Bitcoin and Chanson International

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

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

Diversification Opportunities for Bitcoin and Chanson International

-0.78

Correlation Coefficient

Bitcoin  Chanson International

Pay attention - limited upside

The 3 months correlation between Bitcoin and Chanson is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Chanson International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chanson International 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 Chanson International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chanson International has no effect on the direction of Bitcoin i.e., Bitcoin and Chanson International go up and down completely randomly.

Pair Corralation between Bitcoin and Chanson International

Assuming the 90 days trading horizon Bitcoin is expected to generate 0.22 times more return on investment than Chanson International. However, Bitcoin is 4.51 times less risky than Chanson International. It trades about 0.19 of its potential returns per unit of risk. Chanson International Holding is currently generating about -0.15 per unit of risk. If you would invest  7,272,367  in Bitcoin on October 26, 2024 and sell it today you would earn a total of  3,141,633  from holding Bitcoin or generate 43.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.65%
Values	Daily Returns

Bitcoin  vs.  Chanson International Holding

Bitcoin

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Chanson International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chanson International Holding 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 Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Bitcoin and Chanson International

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

The idea behind Bitcoin and Chanson International Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.