Correlation Between Bitcoin and Eic Value

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

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

Diversification Opportunities for Bitcoin and Eic Value

-0.44

Correlation Coefficient

Bitcoin  Eic Value

Very good diversification

The 3 months correlation between Bitcoin and Eic is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund 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 Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Bitcoin i.e., Bitcoin and Eic Value go up and down completely randomly.

Pair Corralation between Bitcoin and Eic Value

Assuming the 90 days trading horizon Bitcoin is expected to generate 3.62 times more return on investment than Eic Value. However, Bitcoin is 3.62 times more volatile than Eic Value Fund. It trades about 0.11 of its potential returns per unit of risk. Eic Value Fund is currently generating about -0.18 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 Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Bitcoin  vs.  Eic Value Fund

Bitcoin

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 20 (%) 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.

Eic Value Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eic Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Bitcoin and Eic Value

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

The idea behind Bitcoin and Eic Value Fund 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.