Correlation Between Cal-Bay Intl and XTRA Bitcoin

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

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

Diversification Opportunities for Cal-Bay Intl and XTRA Bitcoin

0.0

Correlation Coefficient

Cal-Bay Intl  XTRA Bitcoin

Pay attention - limited upside

The 3 months correlation between Cal-Bay and XTRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cal Bay Intl and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin and Cal-Bay Intl 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 Cal Bay Intl are associated (or correlated) with XTRA Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRA Bitcoin has no effect on the direction of Cal-Bay Intl i.e., Cal-Bay Intl and XTRA Bitcoin go up and down completely randomly.

Pair Corralation between Cal-Bay Intl and XTRA Bitcoin

If you would invest  0.11  in XTRA Bitcoin on December 23, 2024 and sell it today you would lose (0.03) from holding XTRA Bitcoin or give up 27.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cal Bay Intl  vs.  XTRA Bitcoin

Cal Bay Intl

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cal Bay Intl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cal-Bay Intl is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

XTRA Bitcoin

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in XTRA Bitcoin are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, XTRA Bitcoin may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cal-Bay Intl and XTRA Bitcoin

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

The idea behind Cal Bay Intl and XTRA Bitcoin 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.