Correlation Between Origin Protocol and Bitcoin Gold
Can any of the company-specific risk be diversified away by investing in both Origin Protocol 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 Origin Protocol and Bitcoin Gold 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 Gold, you can compare the effects of market volatilities on Origin Protocol 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 Origin Protocol with a short position of Bitcoin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Protocol and Bitcoin Gold.
Diversification Opportunities for Origin Protocol and Bitcoin Gold
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Origin and Bitcoin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Origin Protocol and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold 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 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 Origin Protocol i.e., Origin Protocol and Bitcoin Gold go up and down completely randomly.
Pair Corralation between Origin Protocol and Bitcoin Gold
Assuming the 90 days trading horizon Origin Protocol is expected to generate 1.73 times more return on investment than Bitcoin Gold. However, Origin Protocol is 1.73 times more volatile than Bitcoin Gold. It trades about -0.12 of its potential returns per unit of risk. Bitcoin Gold is currently generating about -0.26 per unit of risk. If you would invest 21.00 in Origin Protocol on January 26, 2024 and sell it today you would lose (5.00) from holding Origin Protocol or give up 23.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Protocol vs. Bitcoin Gold
Performance |
| Timeline |
| Origin Protocol |
| Bitcoin Gold |
Origin Protocol and Bitcoin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Protocol and Bitcoin Gold
The main advantage of trading using opposite Origin Protocol and Bitcoin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Protocol 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.| Origin Protocol vs. Solana | Origin Protocol vs. XRP | Origin Protocol vs. Staked Ether | Origin Protocol vs. The Open Network |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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