Correlation Between GiveMePower Corp and XTRA Bitcoin

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

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

Diversification Opportunities for GiveMePower Corp and XTRA Bitcoin

0.21

Correlation Coefficient

GiveMePower Corp  XTRA Bitcoin

Modest diversification

The 3 months correlation between GiveMePower and XTRA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding GiveMePower Corp and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin and GiveMePower Corp 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 GiveMePower Corp 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 GiveMePower Corp i.e., GiveMePower Corp and XTRA Bitcoin go up and down completely randomly.

Pair Corralation between GiveMePower Corp and XTRA Bitcoin

Given the investment horizon of 90 days GiveMePower Corp is expected to generate 1.75 times more return on investment than XTRA Bitcoin. However, GiveMePower Corp is 1.75 times more volatile than XTRA Bitcoin. It trades about 0.1 of its potential returns per unit of risk. XTRA Bitcoin is currently generating about 0.01 per unit of risk. If you would invest  0.46  in GiveMePower Corp on December 20, 2024 and sell it today you would earn a total of  0.05  from holding GiveMePower Corp or generate 10.87% return on investment over 90 days.

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

GiveMePower Corp  vs.  XTRA Bitcoin

GiveMePower Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GiveMePower Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, GiveMePower Corp showed solid returns over the last few months and may actually be approaching a breakup point.

XTRA Bitcoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days XTRA Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, XTRA Bitcoin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GiveMePower Corp and XTRA Bitcoin

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

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.