Correlation Between Bitcoin Cash and Chiliz
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Chiliz 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 Chiliz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Chiliz, you can compare the effects of market volatilities on Bitcoin Cash and Chiliz 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 Chiliz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Chiliz.
Diversification Opportunities for Bitcoin Cash and Chiliz
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Chiliz is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Chiliz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiliz 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 Chiliz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiliz has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Chiliz go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Chiliz
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 1.79 times more return on investment than Chiliz. However, Bitcoin Cash is 1.79 times more volatile than Chiliz. It trades about 0.26 of its potential returns per unit of risk. Chiliz is currently generating about 0.08 per unit of risk. If you would invest 29,808 in Bitcoin Cash on December 30, 2023 and sell it today you would earn a total of 26,834 from holding Bitcoin Cash or generate 90.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bitcoin Cash vs. Chiliz
Performance |
Timeline |
Bitcoin Cash |
Chiliz |
Bitcoin Cash and Chiliz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin Cash and Chiliz
The main advantage of trading using opposite Bitcoin Cash and Chiliz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Chiliz 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 Chiliz will offset losses from the drop in Chiliz'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
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 | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |