Correlation Between Bitcoin SV and Hedera Hashgraph
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV 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 SV 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 SV and Hedera Hashgraph, you can compare the effects of market volatilities on Bitcoin SV 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 SV with a short position of Hedera Hashgraph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and Hedera Hashgraph.
Diversification Opportunities for Bitcoin SV and Hedera Hashgraph
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and Hedera is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Hedera Hashgraph in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Hashgraph and Bitcoin SV 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 SV 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 SV i.e., Bitcoin SV and Hedera Hashgraph go up and down completely randomly.
Pair Corralation between Bitcoin SV and Hedera Hashgraph
Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the Hedera Hashgraph. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin SV is 3.29 times less risky than Hedera Hashgraph. The crypto coin trades about -0.15 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin SV vs. Hedera Hashgraph
Performance |
| Timeline |
| Bitcoin SV |
| Hedera Hashgraph |
Bitcoin SV and Hedera Hashgraph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and Hedera Hashgraph
The main advantage of trading using opposite Bitcoin SV and Hedera Hashgraph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV 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.The idea behind Bitcoin SV and Hedera Hashgraph pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |