Correlation Between Bitkub Coin and Worldcoin

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

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

Diversification Opportunities for Bitkub Coin and Worldcoin

0.86

Correlation Coefficient

Bitkub Coin  Worldcoin

Very poor diversification

The 3 months correlation between Bitkub and Worldcoin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bitkub Coin and Worldcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldcoin and Bitkub Coin 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 Bitkub Coin are associated (or correlated) with Worldcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldcoin has no effect on the direction of Bitkub Coin i.e., Bitkub Coin and Worldcoin go up and down completely randomly.

Pair Corralation between Bitkub Coin and Worldcoin

Assuming the 90 days trading horizon Bitkub Coin is expected to generate 1.71 times less return on investment than Worldcoin. But when comparing it to its historical volatility, Bitkub Coin is 1.82 times less risky than Worldcoin. It trades about 0.24 of its potential returns per unit of risk. Worldcoin is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  141.00  in Worldcoin on September 1, 2024 and sell it today you would earn a total of  223.00  from holding Worldcoin or generate 158.16% return on investment over 90 days.

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

Bitkub Coin  vs.  Worldcoin

Bitkub Coin

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitkub Coin are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Bitkub Coin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Worldcoin

Risk-Adjusted Performance

17 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Worldcoin are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Worldcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitkub Coin and Worldcoin

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

The idea behind Bitkub Coin and Worldcoin 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.