Correlation Between Bitcoin and EVN Finance

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

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

Diversification Opportunities for Bitcoin and EVN Finance

-0.51

Correlation Coefficient

Bitcoin  EVN Finance

Excellent diversification

The 3 months correlation between Bitcoin and EVN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and EVN Finance JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN Finance JSC 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 EVN Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN Finance JSC has no effect on the direction of Bitcoin i.e., Bitcoin and EVN Finance go up and down completely randomly.

Pair Corralation between Bitcoin and EVN Finance

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the EVN Finance. In addition to that, Bitcoin is 1.01 times more volatile than EVN Finance JSC. It trades about -0.06 of its total potential returns per unit of risk. EVN Finance JSC is currently generating about 0.04 per unit of volatility. If you would invest  972,000  in EVN Finance JSC on December 20, 2024 and sell it today you would earn a total of  43,000  from holding EVN Finance JSC or generate 4.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.19%
Values	Daily Returns

Bitcoin  vs.  EVN Finance JSC

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 latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Bitcoin shareholders.

EVN Finance JSC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EVN Finance JSC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, EVN Finance may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Bitcoin and EVN Finance

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

The idea behind Bitcoin and EVN Finance JSC 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.