Correlation Between BITM and Dusk Network
Can any of the company-specific risk be diversified away by investing in both BITM and Dusk Network 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 BITM and Dusk Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BITM and Dusk Network, you can compare the effects of market volatilities on BITM and Dusk Network 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 BITM with a short position of Dusk Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of BITM and Dusk Network.
Diversification Opportunities for BITM and Dusk Network
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BITM and Dusk is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BITM and Dusk Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dusk Network and BITM 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 BITM are associated (or correlated) with Dusk Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dusk Network has no effect on the direction of BITM i.e., BITM and Dusk Network go up and down completely randomly.
Pair Corralation between BITM and Dusk Network
Assuming the 90 days trading horizon BITM is expected to under-perform the Dusk Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, BITM is 3.02 times less risky than Dusk Network. The crypto coin trades about -0.03 of its potential returns per unit of risk. The Dusk Network is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Dusk Network on January 26, 2024 and sell it today you would earn a total of 20.00 from holding Dusk Network or generate 125.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 41.63% |
Values | Daily Returns |
BITM vs. Dusk Network
Performance |
Timeline |
BITM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dusk Network |
BITM and Dusk Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BITM and Dusk Network
The main advantage of trading using opposite BITM and Dusk Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BITM position performs unexpectedly, Dusk Network 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 Dusk Network will offset losses from the drop in Dusk Network's long position.The idea behind BITM and Dusk Network 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.Dusk Network vs. Solana | Dusk Network vs. XRP | Dusk Network vs. Staked Ether | Dusk Network vs. The Open 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |