Correlation Between ICON Project and Bitcoin Gold
Can any of the company-specific risk be diversified away by investing in both ICON Project and Bitcoin Gold 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 ICON Project and Bitcoin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and Bitcoin Gold, you can compare the effects of market volatilities on ICON Project and Bitcoin Gold 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 ICON Project with a short position of Bitcoin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and Bitcoin Gold.
Diversification Opportunities for ICON Project and Bitcoin Gold
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Bitcoin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and ICON Project 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 ICON Project are associated (or correlated) with Bitcoin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Gold has no effect on the direction of ICON Project i.e., ICON Project and Bitcoin Gold go up and down completely randomly.
Pair Corralation between ICON Project and Bitcoin Gold
Assuming the 90 days trading horizon ICON Project is expected to under-perform the Bitcoin Gold. In addition to that, ICON Project is 1.59 times more volatile than Bitcoin Gold. It trades about -0.07 of its total potential returns per unit of risk. Bitcoin Gold is currently generating about -0.05 per unit of volatility. If you would invest 3,635 in Bitcoin Gold on January 16, 2024 and sell it today you would lose (296.00) from holding Bitcoin Gold or give up 8.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICON Project vs. Bitcoin Gold
Performance |
| Timeline |
| ICON Project |
| Bitcoin Gold |
ICON Project and Bitcoin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICON Project and Bitcoin Gold
The main advantage of trading using opposite ICON Project and Bitcoin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, Bitcoin Gold 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 Gold will offset losses from the drop in Bitcoin Gold's long position.| ICON Project vs. Ethereum | ICON Project vs. Cardano | ICON Project vs. Avalanche | ICON Project vs. Internet Computer |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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