Correlation Between Bitcoin Cash and Sparinvest Value

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Sparinvest Value 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 Sparinvest Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Sparinvest Value Europa, you can compare the effects of market volatilities on Bitcoin Cash and Sparinvest Value 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 Sparinvest Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Sparinvest Value.

Diversification Opportunities for Bitcoin Cash and Sparinvest Value

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bitcoin and Sparinvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Sparinvest Value Europa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Value Europa 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 Sparinvest Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Value Europa has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Sparinvest Value go up and down completely randomly.

Pair Corralation between Bitcoin Cash and Sparinvest Value

If you would invest  32,603  in Bitcoin Cash on December 29, 2023 and sell it today you would earn a total of  21,740  from holding Bitcoin Cash or generate 66.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Bitcoin Cash  vs.  Sparinvest Value Europa

 Performance 
       Timeline  
Bitcoin Cash 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Cash are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Bitcoin Cash exhibited solid returns over the last few months and may actually be approaching a breakup point.
Sparinvest Value Europa 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
OK
Over the last 90 days Sparinvest Value Europa has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent technical and fundamental indicators, Sparinvest Value is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Bitcoin Cash and Sparinvest Value Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin Cash and Sparinvest Value

The main advantage of trading using opposite Bitcoin Cash and Sparinvest Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Sparinvest Value 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 Sparinvest Value will offset losses from the drop in Sparinvest Value's long position.
The idea behind Bitcoin Cash and Sparinvest Value Europa 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.
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas