Correlation Between Bitcoin and Emerald Expositions
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Emerald Expositions 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 and Emerald Expositions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Emerald Expositions Events, you can compare the effects of market volatilities on Bitcoin and Emerald Expositions 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 with a short position of Emerald Expositions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Emerald Expositions.
Diversification Opportunities for Bitcoin and Emerald Expositions
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bitcoin and Emerald is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Emerald Expositions Events in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Expositions and Bitcoin 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 are associated (or correlated) with Emerald Expositions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Expositions has no effect on the direction of Bitcoin i.e., Bitcoin and Emerald Expositions go up and down completely randomly.
Pair Corralation between Bitcoin and Emerald Expositions
Assuming the 90 days trading horizon Bitcoin is expected to generate 0.99 times more return on investment than Emerald Expositions. However, Bitcoin is 1.01 times less risky than Emerald Expositions. It trades about 0.16 of its potential returns per unit of risk. Emerald Expositions Events is currently generating about 0.06 per unit of risk. If you would invest 3,392,352 in Bitcoin on January 19, 2024 and sell it today you would earn a total of 2,757,038 from holding Bitcoin or generate 81.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.09% |
| Values | Daily Returns |
Bitcoin vs. Emerald Expositions Events
Performance |
| Timeline |
| Bitcoin |
| Emerald Expositions |
Bitcoin and Emerald Expositions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Emerald Expositions
The main advantage of trading using opposite Bitcoin and Emerald Expositions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Emerald Expositions 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 Emerald Expositions will offset losses from the drop in Emerald Expositions' long position.The idea behind Bitcoin and Emerald Expositions Events pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Emerald Expositions vs. Deluxe | Emerald Expositions vs. Townsquare Media | Emerald Expositions vs. Cimpress NV | Emerald Expositions vs. Ziff Davis |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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