Correlation Between Bitcoin Cash and Basic Attention
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Basic Attention 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 Bitcoin Cash and Basic Attention into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Basic Attention Token, you can compare the effects of market volatilities on Bitcoin Cash and Basic Attention 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 Bitcoin Cash with a short position of Basic Attention. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Basic Attention.
Diversification Opportunities for Bitcoin Cash and Basic Attention
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and Basic is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Basic Attention Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basic Attention Token and Bitcoin Cash 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 Bitcoin Cash are associated (or correlated) with Basic Attention. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Attention Token has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Basic Attention go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Basic Attention
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 1.01 times more return on investment than Basic Attention. However, Bitcoin Cash is 1.01 times more volatile than Basic Attention Token. It trades about 0.14 of its potential returns per unit of risk. Basic Attention Token is currently generating about -0.11 per unit of risk. If you would invest 41,441 in Bitcoin Cash on January 20, 2024 and sell it today you would earn a total of 7,101 from holding Bitcoin Cash or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Cash vs. Basic Attention Token
Performance |
| Timeline |
| Bitcoin Cash |
| Basic Attention Token |
Bitcoin Cash and Basic Attention Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and Basic Attention
The main advantage of trading using opposite Bitcoin Cash and Basic Attention positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Basic Attention 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 Basic Attention will offset losses from the drop in Basic Attention's long position.| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
| Basic Attention vs. Solana | Basic Attention vs. XRP | Basic Attention vs. The Open Network | Basic Attention vs. Staked Ether |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities |