Correlation Between EBullion and Cathedra Bitcoin

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

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

Diversification Opportunities for EBullion and Cathedra Bitcoin

0.0

Correlation Coefficient

EBullion  Cathedra Bitcoin

Pay attention - limited upside

The 3 months correlation between EBullion and Cathedra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EBullion and Cathedra Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathedra Bitcoin and EBullion 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 EBullion 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 EBullion i.e., EBullion and Cathedra Bitcoin go up and down completely randomly.

Pair Corralation between EBullion and Cathedra Bitcoin

If you would invest (100.00) in EBullion on November 29, 2024 and sell it today you would earn a total of  100.00  from holding EBullion or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

EBullion  vs.  Cathedra Bitcoin

EBullion

Risk-Adjusted Performance

Very Weak

Over the last 90 days EBullion has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, EBullion is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with EBullion and Cathedra Bitcoin

The main advantage of trading using opposite EBullion and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBullion 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 EBullion 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.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.