Correlation Between Bitcoin and KBC ANCORA

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

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

Diversification Opportunities for Bitcoin and KBC ANCORA

-0.67

Correlation Coefficient

Bitcoin  KBC ANCORA

Excellent diversification

The 3 months correlation between Bitcoin and KBC is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and KBC ANCORA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC ANCORA 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 KBC ANCORA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC ANCORA has no effect on the direction of Bitcoin i.e., Bitcoin and KBC ANCORA go up and down completely randomly.

Pair Corralation between Bitcoin and KBC ANCORA

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the KBC ANCORA. In addition to that, Bitcoin is 1.38 times more volatile than KBC ANCORA. It trades about -0.07 of its total potential returns per unit of risk. KBC ANCORA is currently generating about 0.13 per unit of volatility. If you would invest  4,985  in KBC ANCORA on December 21, 2024 and sell it today you would earn a total of  675.00  from holding KBC ANCORA or generate 13.54% return on investment over 90 days.

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

Bitcoin  vs.  KBC ANCORA

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.

KBC ANCORA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KBC ANCORA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, KBC ANCORA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin and KBC ANCORA

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

The idea behind Bitcoin and KBC ANCORA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.