Correlation Between Bitcoin Gold and CENNZ
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and CENNZ 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 Gold and CENNZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and CENNZ, you can compare the effects of market volatilities on Bitcoin Gold and CENNZ 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 Gold with a short position of CENNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and CENNZ.
Diversification Opportunities for Bitcoin Gold and CENNZ
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and CENNZ is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and CENNZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENNZ and Bitcoin Gold 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 Gold are associated (or correlated) with CENNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENNZ has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and CENNZ go up and down completely randomly.
Pair Corralation between Bitcoin Gold and CENNZ
Assuming the 90 days trading horizon Bitcoin Gold is expected to generate 5.42 times less return on investment than CENNZ. But when comparing it to its historical volatility, Bitcoin Gold is 5.72 times less risky than CENNZ. It trades about 0.16 of its potential returns per unit of risk. CENNZ is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1.89 in CENNZ on January 25, 2024 and sell it today you would earn a total of 6.74 from holding CENNZ or generate 356.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Gold vs. CENNZ
Performance |
| Timeline |
| Bitcoin Gold |
| CENNZ |
Bitcoin Gold and CENNZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Gold and CENNZ
The main advantage of trading using opposite Bitcoin Gold and CENNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, CENNZ 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 CENNZ will offset losses from the drop in CENNZ's long position.| Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Bitcoin SV | Bitcoin Gold vs. Staked Ether | Bitcoin Gold vs. XCAD 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |