Correlation Between Bitcoin and HIMARK

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

By analyzing existing cross correlation between Bitcoin and HIMARK 145 10 MAY 26, you can compare the effects of market volatilities on Bitcoin and HIMARK 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 HIMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and HIMARK.

Diversification Opportunities for Bitcoin and HIMARK

-0.5

Correlation Coefficient

Bitcoin  HIMARK

Very good diversification

The 3 months correlation between Bitcoin and HIMARK is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and HIMARK 145 10 MAY 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIMARK 145 10 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 HIMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIMARK 145 10 has no effect on the direction of Bitcoin i.e., Bitcoin and HIMARK go up and down completely randomly.

Pair Corralation between Bitcoin and HIMARK

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the HIMARK. In addition to that, Bitcoin is 11.31 times more volatile than HIMARK 145 10 MAY 26. It trades about -0.09 of its total potential returns per unit of risk. HIMARK 145 10 MAY 26 is currently generating about 0.11 per unit of volatility. If you would invest  9,472  in HIMARK 145 10 MAY 26 on December 23, 2024 and sell it today you would earn a total of  58.00  from holding HIMARK 145 10 MAY 26 or generate 0.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	40.0%
Values	Daily Returns

Bitcoin  vs.  HIMARK 145 10 MAY 26

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.

HIMARK 145 10

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HIMARK 145 10 MAY 26 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HIMARK is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bitcoin and HIMARK

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

The idea behind Bitcoin and HIMARK 145 10 MAY 26 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.