Correlation Between Bitcoin Cash and ZB
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and ZB 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 ZB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and ZB, you can compare the effects of market volatilities on Bitcoin Cash and ZB 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 ZB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and ZB.
Diversification Opportunities for Bitcoin Cash and ZB
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bitcoin and ZB is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and ZB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZB 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 ZB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZB has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and ZB go up and down completely randomly.
Pair Corralation between Bitcoin Cash and ZB
If you would invest 22,939 in Bitcoin Cash on January 20, 2024 and sell it today you would earn a total of 25,603 from holding Bitcoin Cash or generate 111.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Bitcoin Cash vs. ZB
Performance |
| Timeline |
| Bitcoin Cash |
| ZB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitcoin Cash and ZB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and ZB
The main advantage of trading using opposite Bitcoin Cash and ZB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, ZB 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 ZB will offset losses from the drop in ZB'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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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