Correlation Between Bitcoin Cash and Hedera Hashgraph
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Hedera Hashgraph 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 Hedera Hashgraph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Hedera Hashgraph, you can compare the effects of market volatilities on Bitcoin Cash and Hedera Hashgraph 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 Hedera Hashgraph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Hedera Hashgraph.
Diversification Opportunities for Bitcoin Cash and Hedera Hashgraph
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and Hedera is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Hedera Hashgraph in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Hashgraph 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 Hedera Hashgraph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Hashgraph has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Hedera Hashgraph go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Hedera Hashgraph
Assuming the 90 days trading horizon Bitcoin Cash is expected to under-perform the Hedera Hashgraph. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin Cash is 3.23 times less risky than Hedera Hashgraph. The crypto coin trades about -0.01 of its potential returns per unit of risk. The Hedera Hashgraph is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Hedera Hashgraph on January 26, 2024 and sell it today you would earn a total of 5.00 from holding Hedera Hashgraph or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Cash vs. Hedera Hashgraph
Performance |
| Timeline |
| Bitcoin Cash |
| Hedera Hashgraph |
Bitcoin Cash and Hedera Hashgraph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and Hedera Hashgraph
The main advantage of trading using opposite Bitcoin Cash and Hedera Hashgraph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Hedera Hashgraph 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 Hedera Hashgraph will offset losses from the drop in Hedera Hashgraph's long position.| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |