Correlation Between Graph and Bitcoin SV

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

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

Diversification Opportunities for Graph and Bitcoin SV

0.82

Correlation Coefficient

Graph  Bitcoin SV

Very poor diversification

The 3 months correlation between Graph and Bitcoin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding The Graph and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV and Graph 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 The Graph 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 Graph i.e., Graph and Bitcoin SV go up and down completely randomly.

Pair Corralation between Graph and Bitcoin SV

Assuming the 90 days trading horizon The Graph is expected to under-perform the Bitcoin SV. But the crypto coin apears to be less risky and, when comparing its historical volatility, The Graph is 1.35 times less risky than Bitcoin SV. The crypto coin trades about -0.07 of its potential returns per unit of risk. The Bitcoin SV is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  3,837  in Bitcoin SV on February 5, 2025 and sell it today you would lose (168.00) from holding Bitcoin SV or give up 4.38% of portfolio value over 90 days.

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

The Graph  vs.  Bitcoin SV

Graph

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Graph has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for The Graph shareholders.

Bitcoin SV

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin SV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bitcoin SV may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Graph and Bitcoin SV

The main advantage of trading using opposite Graph and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graph 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.

The idea behind The Graph and Bitcoin SV 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.