Correlation Between Bitcoin and Barings Corporate

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

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

Diversification Opportunities for Bitcoin and Barings Corporate

0.24

Correlation Coefficient

Bitcoin  Barings Corporate

Modest diversification

The 3 months correlation between Bitcoin and Barings is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Barings Corporate Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Corporate 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 Barings Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Corporate has no effect on the direction of Bitcoin i.e., Bitcoin and Barings Corporate go up and down completely randomly.

Pair Corralation between Bitcoin and Barings Corporate

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the Barings Corporate. In addition to that, Bitcoin is 1.2 times more volatile than Barings Corporate Investors. It trades about -0.09 of its total potential returns per unit of risk. Barings Corporate Investors is currently generating about 0.04 per unit of volatility. If you would invest  1,963  in Barings Corporate Investors on December 21, 2024 and sell it today you would earn a total of  80.00  from holding Barings Corporate Investors or generate 4.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.75%
Values	Daily Returns

Bitcoin  vs.  Barings Corporate Investors

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 unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Bitcoin shareholders.

Barings Corporate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Barings Corporate Investors are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Barings Corporate is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bitcoin and Barings Corporate

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

The idea behind Bitcoin and Barings Corporate Investors 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.