Correlation Between Bitcoin Gold and HYN
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and HYN 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 HYN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and HYN, you can compare the effects of market volatilities on Bitcoin Gold and HYN 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 HYN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and HYN.
Diversification Opportunities for Bitcoin Gold and HYN
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and HYN is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and HYN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYN 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 HYN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYN has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and HYN go up and down completely randomly.
Pair Corralation between Bitcoin Gold and HYN
Assuming the 90 days trading horizon Bitcoin Gold is expected to generate 2.54 times more return on investment than HYN. However, Bitcoin Gold is 2.54 times more volatile than HYN. It trades about 0.09 of its potential returns per unit of risk. HYN is currently generating about -0.03 per unit of risk. If you would invest 1,454 in Bitcoin Gold on January 20, 2024 and sell it today you would earn a total of 1,791 from holding Bitcoin Gold or generate 123.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 43.19% |
| Values | Daily Returns |
Bitcoin Gold vs. HYN
Performance |
| Timeline |
| Bitcoin Gold |
| HYN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitcoin Gold and HYN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Gold and HYN
The main advantage of trading using opposite Bitcoin Gold and HYN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, HYN 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 HYN will offset losses from the drop in HYN'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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