Correlation Between Bitcoin Gold and MCO
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and MCO 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 MCO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and MCO, you can compare the effects of market volatilities on Bitcoin Gold and MCO 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 MCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and MCO.
Diversification Opportunities for Bitcoin Gold and MCO
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bitcoin and MCO is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and MCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCO 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 MCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCO has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and MCO go up and down completely randomly.
Pair Corralation between Bitcoin Gold and MCO
Assuming the 90 days trading horizon Bitcoin Gold is expected to under-perform the MCO. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin Gold is 46.09 times less risky than MCO. The crypto coin trades about -0.32 of its potential returns per unit of risk. The MCO is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 85.00 in MCO on January 27, 2024 and sell it today you would earn a total of 1,240 from holding MCO or generate 1458.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Gold vs. MCO
Performance |
| Timeline |
| Bitcoin Gold |
| MCO |
Bitcoin Gold and MCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Gold and MCO
The main advantage of trading using opposite Bitcoin Gold and MCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, MCO 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 MCO will offset losses from the drop in MCO'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |