Correlation Between Cal-Bay Intl and Cathedra Bitcoin

Can any of the company-specific risk be diversified away by investing in both Cal-Bay Intl and Cathedra 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 Cathedra 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 Cathedra Bitcoin, you can compare the effects of market volatilities on Cal-Bay Intl and Cathedra 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 Cathedra Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal-Bay Intl and Cathedra Bitcoin.

Diversification Opportunities for Cal-Bay Intl and Cathedra Bitcoin

0.0

Correlation Coefficient

Cal-Bay Intl  Cathedra Bitcoin

Pay attention - limited upside

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

Pair Corralation between Cal-Bay Intl and Cathedra Bitcoin

If you would invest  0.01  in Cal Bay Intl on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Cal Bay Intl or generate 0.0% return on investment over 90 days.

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

Cal Bay Intl  vs.  Cathedra 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.

Cathedra Bitcoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cathedra Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Cal-Bay Intl and Cathedra Bitcoin

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

The idea behind Cal Bay Intl and Cathedra 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.