Correlation Between Halitron and Cathedra Bitcoin

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

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

Diversification Opportunities for Halitron and Cathedra Bitcoin

0.0

Correlation Coefficient

Halitron  Cathedra Bitcoin

Pay attention - limited upside

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

Pair Corralation between Halitron and Cathedra Bitcoin

If you would invest  6.50  in Cathedra Bitcoin on September 3, 2024 and sell it today you would lose (0.81) from holding Cathedra Bitcoin or give up 12.46% of portfolio value over 90 days.

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

Halitron  vs.  Cathedra Bitcoin

Halitron

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Halitron is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Cathedra Bitcoin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cathedra Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cathedra Bitcoin is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Halitron and Cathedra Bitcoin

The main advantage of trading using opposite Halitron and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halitron 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 Halitron 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.