Correlation Between Western Acquisition and BTC Digital

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

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

Diversification Opportunities for Western Acquisition and BTC Digital

0.0

Correlation Coefficient

Western Acquisition  BTC Digital

Pay attention - limited upside

The 3 months correlation between Western and BTC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and BTC Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Digital and Western Acquisition 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 Western Acquisition Ventures are associated (or correlated) with BTC Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Digital has no effect on the direction of Western Acquisition i.e., Western Acquisition and BTC Digital go up and down completely randomly.

Pair Corralation between Western Acquisition and BTC Digital

If you would invest (100.00) in Western Acquisition Ventures on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Western Acquisition Ventures 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

Western Acquisition Ventures  vs.  BTC Digital

Western Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Western Acquisition Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Western Acquisition is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

BTC Digital

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Western Acquisition and BTC Digital

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

The idea behind Western Acquisition Ventures and BTC Digital 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.