Correlation Between Bitcoin Cash and Origin Protocol
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Origin Protocol 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 Origin Protocol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Origin Protocol, you can compare the effects of market volatilities on Bitcoin Cash and Origin Protocol 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 Origin Protocol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Origin Protocol.
Diversification Opportunities for Bitcoin Cash and Origin Protocol
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and Origin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Origin Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Protocol 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 Origin Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Protocol has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Origin Protocol go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Origin Protocol
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 0.83 times more return on investment than Origin Protocol. However, Bitcoin Cash is 1.21 times less risky than Origin Protocol. It trades about -0.01 of its potential returns per unit of risk. Origin Protocol is currently generating about -0.12 per unit of risk. If you would invest 53,880 in Bitcoin Cash on January 26, 2024 and sell it today you would lose (3,392) from holding Bitcoin Cash or give up 6.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Cash vs. Origin Protocol
Performance |
| Timeline |
| Bitcoin Cash |
| Origin Protocol |
Bitcoin Cash and Origin Protocol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and Origin Protocol
The main advantage of trading using opposite Bitcoin Cash and Origin Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Origin Protocol 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 Origin Protocol will offset losses from the drop in Origin Protocol's long position.| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
| Origin Protocol vs. Solana | Origin Protocol vs. XRP | Origin Protocol vs. Staked Ether | Origin Protocol vs. The Open Network |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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