Correlation Between Bitcoin and RADIANCE HLDGS

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Can any of the company-specific risk be diversified away by investing in both Bitcoin and RADIANCE HLDGS 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 RADIANCE HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and RADIANCE HLDGS GRPHD 01, you can compare the effects of market volatilities on Bitcoin and RADIANCE HLDGS 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 RADIANCE HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and RADIANCE HLDGS.

Diversification Opportunities for Bitcoin and RADIANCE HLDGS

BitcoinRADIANCEDiversified AwayBitcoinRADIANCEDiversified Away100%
-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between Bitcoin and RADIANCE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and RADIANCE HLDGS GRPHD 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RADIANCE HLDGS GRPHD 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 RADIANCE HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RADIANCE HLDGS GRPHD has no effect on the direction of Bitcoin i.e., Bitcoin and RADIANCE HLDGS go up and down completely randomly.

Pair Corralation between Bitcoin and RADIANCE HLDGS

Assuming the 90 days trading horizon Bitcoin is expected to generate 0.81 times more return on investment than RADIANCE HLDGS. However, Bitcoin is 1.23 times less risky than RADIANCE HLDGS. It trades about 0.07 of its potential returns per unit of risk. RADIANCE HLDGS GRPHD 01 is currently generating about -0.22 per unit of risk. If you would invest  9,843,625  in Bitcoin on October 21, 2024 and sell it today you would earn a total of  592,075  from holding Bitcoin or generate 6.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy90.7%
ValuesDaily Returns

Bitcoin  vs.  RADIANCE HLDGS GRPHD 01

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-1001020304050
JavaScript chart by amCharts 3.21.15BTC RDH
       Timeline  
Bitcoin 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 17 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan70,00075,00080,00085,00090,00095,000100,000105,000
RADIANCE HLDGS GRPHD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days RADIANCE HLDGS GRPHD 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, RADIANCE HLDGS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.320.340.360.380.40.420.440.46

Bitcoin and RADIANCE HLDGS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.97-7.47-4.96-2.460.02.785.568.3411.12 0.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15BTC RDH
       Returns  

Pair Trading with Bitcoin and RADIANCE HLDGS

The main advantage of trading using opposite Bitcoin and RADIANCE HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, RADIANCE HLDGS 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 RADIANCE HLDGS will offset losses from the drop in RADIANCE HLDGS's long position.
The idea behind Bitcoin and RADIANCE HLDGS GRPHD 01 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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