Correlation Between Bitcoin Gold and Enjin Coin
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and Enjin Coin 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 Enjin Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and Enjin Coin, you can compare the effects of market volatilities on Bitcoin Gold and Enjin Coin 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 Enjin Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and Enjin Coin.
Diversification Opportunities for Bitcoin Gold and Enjin Coin
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and Enjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and Enjin Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enjin Coin 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 Enjin Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enjin Coin has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and Enjin Coin go up and down completely randomly.
Pair Corralation between Bitcoin Gold and Enjin Coin
Assuming the 90 days trading horizon Bitcoin Gold is expected to generate 1.01 times more return on investment than Enjin Coin. However, Bitcoin Gold is 1.01 times more volatile than Enjin Coin. It trades about 0.13 of its potential returns per unit of risk. Enjin Coin is currently generating about 0.0 per unit of risk. If you would invest 2,424 in Bitcoin Gold on January 20, 2024 and sell it today you would earn a total of 821.00 from holding Bitcoin Gold or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Gold vs. Enjin Coin
Performance |
| Timeline |
| Bitcoin Gold |
| Enjin Coin |
Bitcoin Gold and Enjin Coin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Gold and Enjin Coin
The main advantage of trading using opposite Bitcoin Gold and Enjin Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, Enjin Coin 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 Enjin Coin will offset losses from the drop in Enjin Coin's long position.| Bitcoin Gold vs. Bitcoin | Bitcoin Gold vs. Dogecoin | Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Litecoin |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |