Correlation Between Bitcoin Cash and BRC
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and BRC 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 BRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and BRC, you can compare the effects of market volatilities on Bitcoin Cash and BRC 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 BRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and BRC.
Diversification Opportunities for Bitcoin Cash and BRC
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and BRC is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and BRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRC 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 BRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRC has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and BRC go up and down completely randomly.
Pair Corralation between Bitcoin Cash and BRC
If you would invest 47,908 in Bitcoin Cash on January 24, 2024 and sell it today you would earn a total of 3,193 from holding Bitcoin Cash or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bitcoin Cash vs. BRC
Performance |
| Timeline |
| Bitcoin Cash |
| BRC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitcoin Cash and BRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and BRC
The main advantage of trading using opposite Bitcoin Cash and BRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, BRC 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 BRC will offset losses from the drop in BRC's long position.| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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