Correlation Between Integrated Ventures and Crypto

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

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

Diversification Opportunities for Integrated Ventures and Crypto

0.27

Correlation Coefficient

Integrated Ventures  Crypto

Modest diversification

The 3 months correlation between Integrated and Crypto is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Ventures and Crypto Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crypto and Integrated Ventures 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 Integrated Ventures are associated (or correlated) with Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crypto has no effect on the direction of Integrated Ventures i.e., Integrated Ventures and Crypto go up and down completely randomly.

Pair Corralation between Integrated Ventures and Crypto

Given the investment horizon of 90 days Integrated Ventures is expected to under-perform the Crypto. But the otc stock apears to be less risky and, when comparing its historical volatility, Integrated Ventures is 1.78 times less risky than Crypto. The otc stock trades about -0.06 of its potential returns per unit of risk. The Crypto Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.10  in Crypto Co on October 25, 2024 and sell it today you would lose (0.03) from holding Crypto Co or give up 30.0% of portfolio value over 90 days.

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

Integrated Ventures  vs.  Crypto Co

Integrated Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Crypto

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crypto Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak fundamental indicators, Crypto may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Integrated Ventures and Crypto

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

The idea behind Integrated Ventures and Crypto Co 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.