Correlation Between 1911 Gold and Cathedra Bitcoin

Can any of the company-specific risk be diversified away by investing in both 1911 Gold and Cathedra Bitcoin 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 1911 Gold and Cathedra Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1911 Gold Corp and Cathedra Bitcoin, you can compare the effects of market volatilities on 1911 Gold and Cathedra Bitcoin 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 1911 Gold with a short position of Cathedra Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1911 Gold and Cathedra Bitcoin.

Diversification Opportunities for 1911 Gold and Cathedra Bitcoin

0.23

Correlation Coefficient

1911 Gold  Cathedra Bitcoin

Modest diversification

The 3 months correlation between 1911 and Cathedra is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding 1911 Gold Corp and Cathedra Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathedra Bitcoin and 1911 Gold 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 1911 Gold Corp are associated (or correlated) with Cathedra Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathedra Bitcoin has no effect on the direction of 1911 Gold i.e., 1911 Gold and Cathedra Bitcoin go up and down completely randomly.

Pair Corralation between 1911 Gold and Cathedra Bitcoin

Assuming the 90 days horizon 1911 Gold is expected to generate 4.44 times less return on investment than Cathedra Bitcoin. But when comparing it to its historical volatility, 1911 Gold Corp is 1.65 times less risky than Cathedra Bitcoin. It trades about 0.05 of its potential returns per unit of risk. Cathedra Bitcoin is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2.60  in Cathedra Bitcoin on May 6, 2025 and sell it today you would earn a total of  1.71  from holding Cathedra Bitcoin or generate 65.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

1911 Gold Corp  vs.  Cathedra Bitcoin

1911 Gold Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in 1911 Gold Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, 1911 Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Cathedra Bitcoin

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cathedra Bitcoin are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cathedra Bitcoin reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 1911 Gold and Cathedra Bitcoin

The main advantage of trading using opposite 1911 Gold and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1911 Gold position performs unexpectedly, Cathedra Bitcoin 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 Cathedra Bitcoin will offset losses from the drop in Cathedra Bitcoin's long position.

The idea behind 1911 Gold Corp and Cathedra Bitcoin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.