Correlation Between Bitcoin Cash and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Nykredit Invest 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 Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Nykredit Invest Lange, you can compare the effects of market volatilities on Bitcoin Cash and Nykredit Invest 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 Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Nykredit Invest.
Diversification Opportunities for Bitcoin Cash and Nykredit Invest
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and Nykredit is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Nykredit Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Lange 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 Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Lange has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Nykredit Invest go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Nykredit Invest
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 23.15 times more return on investment than Nykredit Invest. However, Bitcoin Cash is 23.15 times more volatile than Nykredit Invest Lange. It trades about 0.12 of its potential returns per unit of risk. Nykredit Invest Lange is currently generating about 0.02 per unit of risk. If you would invest 11,927 in Bitcoin Cash on January 25, 2024 and sell it today you would earn a total of 38,561 from holding Bitcoin Cash or generate 323.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.11% |
Values | Daily Returns |
Bitcoin Cash vs. Nykredit Invest Lange
Performance |
Timeline |
Bitcoin Cash |
Nykredit Invest Lange |
Bitcoin Cash and Nykredit Invest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin Cash and Nykredit Invest
The main advantage of trading using opposite Bitcoin Cash and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Nykredit Invest 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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