Correlation Between Bitcoin Depot and ATIF Holdings

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

By analyzing existing cross correlation between Bitcoin Depot and ATIF Holdings, you can compare the effects of market volatilities on Bitcoin Depot and ATIF Holdings 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 Depot with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Depot and ATIF Holdings.

Diversification Opportunities for Bitcoin Depot and ATIF Holdings

-0.57

Correlation Coefficient

Bitcoin Depot  ATIF Holdings

Excellent diversification

The 3 months correlation between Bitcoin and ATIF is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Depot and ATIF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings and Bitcoin Depot 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 Depot are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings has no effect on the direction of Bitcoin Depot i.e., Bitcoin Depot and ATIF Holdings go up and down completely randomly.

Pair Corralation between Bitcoin Depot and ATIF Holdings

Considering the 90-day investment horizon Bitcoin Depot is expected to under-perform the ATIF Holdings. In addition to that, Bitcoin Depot is 1.0 times more volatile than ATIF Holdings. It trades about -0.28 of its total potential returns per unit of risk. ATIF Holdings is currently generating about 0.07 per unit of volatility. If you would invest  70.00  in ATIF Holdings on September 12, 2024 and sell it today you would earn a total of  4.00  from holding ATIF Holdings or generate 5.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bitcoin Depot  vs.  ATIF Holdings

Bitcoin Depot

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Depot are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Bitcoin Depot displayed solid returns over the last few months and may actually be approaching a breakup point.

ATIF Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATIF Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Bitcoin Depot and ATIF Holdings

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

The idea behind Bitcoin Depot and ATIF Holdings 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.