Correlation Between Bitcoin Gold and AION
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and AION 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 Gold and AION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and AION, you can compare the effects of market volatilities on Bitcoin Gold and AION 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 Gold with a short position of AION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and AION.
Diversification Opportunities for Bitcoin Gold and AION
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and AION is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and AION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AION and Bitcoin Gold 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 Gold are associated (or correlated) with AION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AION has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and AION go up and down completely randomly.
Pair Corralation between Bitcoin Gold and AION
Assuming the 90 days trading horizon Bitcoin Gold is expected to generate 143.94 times less return on investment than AION. But when comparing it to its historical volatility, Bitcoin Gold is 31.51 times less risky than AION. It trades about 0.04 of its potential returns per unit of risk. AION is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3.74 in AION on January 20, 2024 and sell it today you would lose (3.23) from holding AION or give up 86.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Gold vs. AION
Performance |
| Timeline |
| Bitcoin Gold |
| AION |
Bitcoin Gold and AION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Gold and AION
The main advantage of trading using opposite Bitcoin Gold and AION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, AION 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 AION will offset losses from the drop in AION's long position.| Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Bitcoin SV | Bitcoin Gold vs. Staked Ether | Bitcoin Gold vs. XCAD Network |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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