Correlation Between Conflux Network and Bitcoin SV
Can any of the company-specific risk be diversified away by investing in both Conflux Network 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 Conflux Network and Bitcoin SV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conflux Network and Bitcoin SV, you can compare the effects of market volatilities on Conflux Network 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 Conflux Network with a short position of Bitcoin SV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conflux Network and Bitcoin SV.
Diversification Opportunities for Conflux Network and Bitcoin SV
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Conflux and Bitcoin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Conflux Network and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV and Conflux Network 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 Conflux Network 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 Conflux Network i.e., Conflux Network and Bitcoin SV go up and down completely randomly.
Pair Corralation between Conflux Network and Bitcoin SV
Assuming the 90 days trading horizon Conflux Network is expected to generate 2.06 times more return on investment than Bitcoin SV. However, Conflux Network is 2.06 times more volatile than Bitcoin SV. It trades about 0.07 of its potential returns per unit of risk. Bitcoin SV is currently generating about 0.03 per unit of risk. If you would invest 5.79 in Conflux Network on February 7, 2024 and sell it today you would earn a total of 17.21 from holding Conflux Network or generate 297.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Conflux Network vs. Bitcoin SV
Performance |
Timeline |
Conflux Network |
Bitcoin SV |
Conflux Network and Bitcoin SV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Conflux Network and Bitcoin SV
The main advantage of trading using opposite Conflux Network and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conflux Network 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.Conflux Network vs. Bitcoin | Conflux Network vs. Dogecoin | Conflux Network vs. Bitcoin Cash | Conflux Network 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |