Correlation Between Origin Protocol and Bitcoin SV
Can any of the company-specific risk be diversified away by investing in both Origin Protocol and Bitcoin SV 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 Origin Protocol and Bitcoin SV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Protocol and Bitcoin SV, you can compare the effects of market volatilities on Origin Protocol and Bitcoin SV 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 Origin Protocol with a short position of Bitcoin SV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and Bitcoin SV.
Diversification Opportunities for Origin Protocol and Bitcoin SV
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Origin and Bitcoin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV and Origin Protocol 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 Origin Protocol are associated (or correlated) with Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of Origin Protocol i.e., Origin Protocol and Bitcoin SV go up and down completely randomly.
Pair Corralation between Origin Protocol and Bitcoin SV
Assuming the 90 days trading horizon Origin Protocol is expected to generate 1.31 times less return on investment than Bitcoin SV. But when comparing it to its historical volatility, Origin Protocol is 1.39 times less risky than Bitcoin SV. It trades about 0.1 of its potential returns per unit of risk. Bitcoin SV is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,282 in Bitcoin SV on December 29, 2023 and sell it today you would earn a total of 919.00 from holding Bitcoin SV or generate 11.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Origin Protocol vs. Bitcoin SV
Performance |
Timeline |
Origin Protocol |
Bitcoin SV |
Origin Protocol and Bitcoin SV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Origin Protocol and Bitcoin SV
The main advantage of trading using opposite Origin Protocol and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol position performs unexpectedly, Bitcoin SV 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 SV will offset losses from the drop in Bitcoin SV's long position.Origin Protocol vs. Solana | Origin Protocol vs. XRP | Origin Protocol vs. Staked Ether | Origin Protocol vs. Avalanche |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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