Correlation Between Bitcoin Gold and THR
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and THR 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 THR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and THR, you can compare the effects of market volatilities on Bitcoin Gold and THR 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 THR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and THR.
Diversification Opportunities for Bitcoin Gold and THR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and THR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and THR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THR 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 THR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THR has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and THR go up and down completely randomly.
Pair Corralation between Bitcoin Gold and THR
If you would invest 2,074 in Bitcoin Gold on January 20, 2024 and sell it today you would earn a total of 1,171 from holding Bitcoin Gold or generate 56.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
Bitcoin Gold vs. THR
Performance |
Timeline |
Bitcoin Gold |
THR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitcoin Gold and THR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin Gold and THR
The main advantage of trading using opposite Bitcoin Gold and THR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, THR 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 THR will offset losses from the drop in THR'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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