Correlation Between Enjin Coin and Bitcoin Cash
Can any of the company-specific risk be diversified away by investing in both Enjin Coin and Bitcoin Cash 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 Enjin Coin and Bitcoin Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enjin Coin and Bitcoin Cash, you can compare the effects of market volatilities on Enjin Coin and Bitcoin Cash 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 Enjin Coin with a short position of Bitcoin Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enjin Coin and Bitcoin Cash.
Diversification Opportunities for Enjin Coin and Bitcoin Cash
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enjin and Bitcoin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Enjin Coin and Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Cash and Enjin Coin 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 Enjin Coin are associated (or correlated) with Bitcoin Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Cash has no effect on the direction of Enjin Coin i.e., Enjin Coin and Bitcoin Cash go up and down completely randomly.
Pair Corralation between Enjin Coin and Bitcoin Cash
Assuming the 90 days trading horizon Enjin Coin is expected to generate 3.58 times less return on investment than Bitcoin Cash. But when comparing it to its historical volatility, Enjin Coin is 1.54 times less risky than Bitcoin Cash. It trades about 0.07 of its potential returns per unit of risk. Bitcoin Cash is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 24,183 in Bitcoin Cash on January 25, 2024 and sell it today you would earn a total of 26,305 from holding Bitcoin Cash or generate 108.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enjin Coin vs. Bitcoin Cash
Performance |
| Timeline |
| Enjin Coin |
| Bitcoin Cash |
Enjin Coin and Bitcoin Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enjin Coin and Bitcoin Cash
The main advantage of trading using opposite Enjin Coin and Bitcoin Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enjin Coin position performs unexpectedly, Bitcoin Cash 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 Bitcoin Cash will offset losses from the drop in Bitcoin Cash's long position.| Enjin Coin vs. Staked Ether | Enjin Coin vs. XCAD Network | Enjin Coin vs. Phala Network | Enjin Coin vs. EOSDAC |
| Bitcoin Cash vs. Bitcoin Gold | Bitcoin Cash vs. Bitcoin SV | Bitcoin Cash vs. Staked Ether | Bitcoin Cash 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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