Correlation Between Bitcoin and TELEFO

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

By analyzing existing cross correlation between Bitcoin and TELEFO 495 17 JUL 30, you can compare the effects of market volatilities on Bitcoin and TELEFO 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 TELEFO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and TELEFO.

Diversification Opportunities for Bitcoin and TELEFO

-0.6

Correlation Coefficient

Bitcoin  TELEFO

Excellent diversification

The 3 months correlation between Bitcoin and TELEFO is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and TELEFO 495 17 JUL 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELEFO 495 17 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 TELEFO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELEFO 495 17 has no effect on the direction of Bitcoin i.e., Bitcoin and TELEFO go up and down completely randomly.

Pair Corralation between Bitcoin and TELEFO

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the TELEFO. In addition to that, Bitcoin is 2.91 times more volatile than TELEFO 495 17 JUL 30. It trades about -0.09 of its total potential returns per unit of risk. TELEFO 495 17 JUL 30 is currently generating about 0.5 per unit of volatility. If you would invest  8,415  in TELEFO 495 17 JUL 30 on December 23, 2024 and sell it today you would earn a total of  385.00  from holding TELEFO 495 17 JUL 30 or generate 4.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	16.92%
Values	Daily Returns

Bitcoin  vs.  TELEFO 495 17 JUL 30

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.

TELEFO 495 17

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in TELEFO 495 17 JUL 30 are ranked lower than 39 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, TELEFO sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin and TELEFO

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

The idea behind Bitcoin and TELEFO 495 17 JUL 30 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .