Correlation Between Bitcoin and Minehub Technologies
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Minehub Technologies 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 Minehub Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Minehub Technologies, you can compare the effects of market volatilities on Bitcoin and Minehub Technologies 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 Minehub Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Minehub Technologies.
Diversification Opportunities for Bitcoin and Minehub Technologies
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitcoin and Minehub is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Minehub Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minehub Technologies 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 Minehub Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minehub Technologies has no effect on the direction of Bitcoin i.e., Bitcoin and Minehub Technologies go up and down completely randomly.
Pair Corralation between Bitcoin and Minehub Technologies
Assuming the 90 days trading horizon Bitcoin is expected to under-perform the Minehub Technologies. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin is 3.25 times less risky than Minehub Technologies. The crypto coin trades about -0.09 of its potential returns per unit of risk. The Minehub Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Minehub Technologies on December 22, 2024 and sell it today you would earn a total of 35.00 from holding Minehub Technologies or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.38% |
| Values | Daily Returns |
Bitcoin vs. Minehub Technologies
Performance |
| Timeline |
| Bitcoin |
| Minehub Technologies |
Bitcoin and Minehub Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Minehub Technologies
The main advantage of trading using opposite Bitcoin and Minehub Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Minehub Technologies 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 Minehub Technologies will offset losses from the drop in Minehub Technologies' long position.The idea behind Bitcoin and Minehub Technologies 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.The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Minehub Technologies as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Minehub Technologies' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Minehub Technologies' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Minehub Technologies.
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |