Correlation Between Bitcoin and RADIANCE HLDGS
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
-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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.7% |
Values | Daily Returns |
Bitcoin vs. RADIANCE HLDGS GRPHD 01
Performance |
Timeline |
Bitcoin |
RADIANCE HLDGS GRPHD |
Bitcoin and RADIANCE HLDGS Volatility Contrast
Predicted Return Density |
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.RADIANCE HLDGS vs. China Resources Land | ||
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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 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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