Correlation Between BitFrontier Capital and AMTD IDEA
Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital and AMTD IDEA 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 BitFrontier Capital and AMTD IDEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFrontier Capital Holdings and AMTD IDEA Group, you can compare the effects of market volatilities on BitFrontier Capital and AMTD IDEA 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 BitFrontier Capital with a short position of AMTD IDEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and AMTD IDEA.
Diversification Opportunities for BitFrontier Capital and AMTD IDEA
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BitFrontier and AMTD is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and AMTD IDEA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMTD IDEA Group and BitFrontier Capital 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 BitFrontier Capital Holdings are associated (or correlated) with AMTD IDEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMTD IDEA Group has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and AMTD IDEA go up and down completely randomly.
Pair Corralation between BitFrontier Capital and AMTD IDEA
Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to generate 4.8 times more return on investment than AMTD IDEA. However, BitFrontier Capital is 4.8 times more volatile than AMTD IDEA Group. It trades about 0.04 of its potential returns per unit of risk. AMTD IDEA Group is currently generating about -0.05 per unit of risk. If you would invest 0.80 in BitFrontier Capital Holdings on January 25, 2024 and sell it today you would lose (0.15) from holding BitFrontier Capital Holdings or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
BitFrontier Capital Holdings vs. AMTD IDEA Group
Performance |
| Timeline |
| BitFrontier Capital |
| AMTD IDEA Group |
BitFrontier Capital and AMTD IDEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFrontier Capital and AMTD IDEA
The main advantage of trading using opposite BitFrontier Capital and AMTD IDEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital position performs unexpectedly, AMTD IDEA 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 AMTD IDEA will offset losses from the drop in AMTD IDEA's long position.| BitFrontier Capital vs. First Tractor | BitFrontier Capital vs. Ag Growth International | BitFrontier Capital vs. AmeraMex International | BitFrontier Capital vs. Arts Way Manufacturing Co |
| AMTD IDEA vs. Invesco Plc | AMTD IDEA vs. Franklin Resources | AMTD IDEA vs. T Rowe Price | AMTD IDEA vs. SEI Investments |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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