Correlation Between Hedera Hashgraph and Bitcoin Cash
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and Bitcoin Cash 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 Hedera Hashgraph and Bitcoin Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and Bitcoin Cash, you can compare the effects of market volatilities on Hedera Hashgraph and Bitcoin Cash 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 Hedera Hashgraph with a short position of Bitcoin Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and Bitcoin Cash.
Diversification Opportunities for Hedera Hashgraph and Bitcoin Cash
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hedera and Bitcoin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Cash and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with Bitcoin Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Cash has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and Bitcoin Cash go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and Bitcoin Cash
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 3.18 times more return on investment than Bitcoin Cash. However, Hedera Hashgraph is 3.18 times more volatile than Bitcoin Cash. It trades about 0.03 of its potential returns per unit of risk. Bitcoin Cash is currently generating about 0.08 per unit of risk. If you would invest 12.00 in Hedera Hashgraph on January 25, 2024 and sell it today you would lose (3.19) from holding Hedera Hashgraph or give up 26.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedera Hashgraph vs. Bitcoin Cash
Performance |
| Timeline |
| Hedera Hashgraph |
| Bitcoin Cash |
Hedera Hashgraph and Bitcoin Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and Bitcoin Cash
The main advantage of trading using opposite Hedera Hashgraph and Bitcoin Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, Bitcoin Cash 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 Bitcoin Cash will offset losses from the drop in Bitcoin Cash's long position.| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph vs. The Open Network |
| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
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.
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