Correlation Between BTC Digital and Intelligent Protection

Can any of the company-specific risk be diversified away by investing in both BTC Digital and Intelligent Protection 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 BTC Digital and Intelligent Protection into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BTC Digital and Intelligent Protection Management, you can compare the effects of market volatilities on BTC Digital and Intelligent Protection 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 BTC Digital with a short position of Intelligent Protection. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Digital and Intelligent Protection.

Diversification Opportunities for BTC Digital and Intelligent Protection

-0.15

Correlation Coefficient

BTC Digital  Intelligent Protection

Good diversification

The 3 months correlation between BTC and Intelligent is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BTC Digital and Intelligent Protection Managem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Protection and BTC Digital 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 BTC Digital are associated (or correlated) with Intelligent Protection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Protection has no effect on the direction of BTC Digital i.e., BTC Digital and Intelligent Protection go up and down completely randomly.

Pair Corralation between BTC Digital and Intelligent Protection

Given the investment horizon of 90 days BTC Digital is expected to under-perform the Intelligent Protection. In addition to that, BTC Digital is 1.33 times more volatile than Intelligent Protection Management. It trades about -0.08 of its total potential returns per unit of risk. Intelligent Protection Management is currently generating about 0.06 per unit of volatility. If you would invest  181.00  in Intelligent Protection Management on May 6, 2025 and sell it today you would earn a total of  19.00  from holding Intelligent Protection Management or generate 10.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BTC Digital  vs.  Intelligent Protection Managem

BTC Digital

Risk-Adjusted Performance

Very Weak

Over the last 90 days BTC Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Intelligent Protection

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Protection Management are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Intelligent Protection displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BTC Digital and Intelligent Protection

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

The idea behind BTC Digital and Intelligent Protection Management 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.