Correlation Between WhiteBIT Token and PPT

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

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

Diversification Opportunities for WhiteBIT Token and PPT

-0.18

Correlation Coefficient

WhiteBIT Token  PPT

Good diversification

The 3 months correlation between WhiteBIT and PPT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and PPT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPT and WhiteBIT Token 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 WhiteBIT Token are associated (or correlated) with PPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPT has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and PPT go up and down completely randomly.

Pair Corralation between WhiteBIT Token and PPT

Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.88 times more return on investment than PPT. However, WhiteBIT Token is 1.14 times less risky than PPT. It trades about 0.12 of its potential returns per unit of risk. PPT is currently generating about -0.05 per unit of risk. If you would invest  2,454  in WhiteBIT Token on December 29, 2024 and sell it today you would earn a total of  418.00  from holding WhiteBIT Token or generate 17.03% return on investment over 90 days.

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

WhiteBIT Token  vs.  PPT

WhiteBIT Token

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in WhiteBIT Token are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, WhiteBIT Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

PPT

Risk-Adjusted Performance

Very Weak

Over the last 90 days PPT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for PPT shareholders.

Pair Trading with WhiteBIT Token and PPT

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

The idea behind WhiteBIT Token and PPT 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.