Correlation Between WhiteBIT Token and Immutable

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

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

Diversification Opportunities for WhiteBIT Token and Immutable

-0.33

Correlation Coefficient

WhiteBIT Token  Immutable

Very good diversification

The 3 months correlation between WhiteBIT and Immutable is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and Immutable X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutable X and WhiteBIT Token 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 WhiteBIT Token are associated (or correlated) with Immutable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutable X has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and Immutable go up and down completely randomly.

Pair Corralation between WhiteBIT Token and Immutable

Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.73 times more return on investment than Immutable. However, WhiteBIT Token is 1.38 times less risky than Immutable. It trades about 0.3 of its potential returns per unit of risk. Immutable X is currently generating about -0.01 per unit of risk. If you would invest  1,097  in WhiteBIT Token on August 23, 2024 and sell it today you would earn a total of  1,298  from holding WhiteBIT Token or generate 118.32% return on investment over 90 days.

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

WhiteBIT Token  vs.  Immutable X

WhiteBIT Token

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WhiteBIT Token are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, WhiteBIT Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

Immutable X

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immutable X has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Immutable is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with WhiteBIT Token and Immutable

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

The idea behind WhiteBIT Token and Immutable X 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 Anywhere module to track or share privately all of your investments from the convenience of any device.