Correlation Between Bitcoin Cash and MOF
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and MOF 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 MOF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and MOF, you can compare the effects of market volatilities on Bitcoin Cash and MOF 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 MOF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and MOF.
Diversification Opportunities for Bitcoin Cash and MOF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and MOF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and MOF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOF 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 MOF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOF has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and MOF go up and down completely randomly.
Pair Corralation between Bitcoin Cash and MOF
If you would invest 29,679 in Bitcoin Cash on December 29, 2023 and sell it today you would earn a total of 26,963 from holding Bitcoin Cash or generate 90.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bitcoin Cash vs. MOF
Performance |
Timeline |
Bitcoin Cash |
MOF |
Bitcoin Cash and MOF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin Cash and MOF
The main advantage of trading using opposite Bitcoin Cash and MOF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, MOF 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 MOF will offset losses from the drop in MOF's long position.Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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