Correlation Between Bitcoin Gold and MTL

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

Diversification Opportunities for Bitcoin Gold and MTL

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Bitcoin and MTL is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and MTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTL and Bitcoin Gold 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 Gold are associated (or correlated) with MTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTL has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and MTL go up and down completely randomly.

Pair Corralation between Bitcoin Gold and MTL

Assuming the 90 days trading horizon Bitcoin Gold is expected to generate 0.89 times more return on investment than MTL. However, Bitcoin Gold is 1.12 times less risky than MTL. It trades about 0.37 of its potential returns per unit of risk. MTL is currently generating about 0.18 per unit of risk. If you would invest  2,628  in Bitcoin Gold on December 29, 2023 and sell it today you would earn a total of  1,991  from holding Bitcoin Gold or generate 75.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Bitcoin Gold  vs.  MTL

 Performance 
       Timeline  
Bitcoin Gold 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Gold are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Bitcoin Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.
MTL 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MTL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, MTL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bitcoin Gold and MTL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin Gold and MTL

The main advantage of trading using opposite Bitcoin Gold and MTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, MTL 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 MTL will offset losses from the drop in MTL's long position.
The idea behind Bitcoin Gold and MTL 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
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
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios