Correlation Between Yield Guild and BITM
Can any of the company-specific risk be diversified away by investing in both Yield Guild and BITM 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 Yield Guild and BITM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yield Guild Games and BITM, you can compare the effects of market volatilities on Yield Guild and BITM 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 Yield Guild with a short position of BITM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yield Guild and BITM.
Diversification Opportunities for Yield Guild and BITM
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yield and BITM is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Yield Guild Games and BITM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BITM and Yield Guild 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 Yield Guild Games are associated (or correlated) with BITM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BITM has no effect on the direction of Yield Guild i.e., Yield Guild and BITM go up and down completely randomly.
Pair Corralation between Yield Guild and BITM
If you would invest 82.00 in Yield Guild Games on January 20, 2024 and sell it today you would earn a total of 2.00 from holding Yield Guild Games or generate 2.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 4.35% |
Values | Daily Returns |
Yield Guild Games vs. BITM
Performance |
Timeline |
Yield Guild Games |
BITM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yield Guild and BITM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yield Guild and BITM
The main advantage of trading using opposite Yield Guild and BITM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yield Guild position performs unexpectedly, BITM 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 BITM will offset losses from the drop in BITM's long position.Yield Guild vs. Solana | Yield Guild vs. XRP | Yield Guild vs. The Open Network | Yield Guild vs. Staked Ether |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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