Correlation Between Bitkub Coin and Staked Ether

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

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

Diversification Opportunities for Bitkub Coin and Staked Ether

0.72

Correlation Coefficient

Bitkub Coin  Staked Ether

Poor diversification

The 3 months correlation between Bitkub and Staked is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bitkub Coin and Staked Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staked Ether and Bitkub Coin 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 Bitkub Coin are associated (or correlated) with Staked Ether. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staked Ether has no effect on the direction of Bitkub Coin i.e., Bitkub Coin and Staked Ether go up and down completely randomly.

Pair Corralation between Bitkub Coin and Staked Ether

Assuming the 90 days trading horizon Bitkub Coin is expected to generate 1.14 times more return on investment than Staked Ether. However, Bitkub Coin is 1.14 times more volatile than Staked Ether. It trades about 0.24 of its potential returns per unit of risk. Staked Ether is currently generating about 0.18 per unit of risk. If you would invest  139.00  in Bitkub Coin on September 3, 2024 and sell it today you would earn a total of  113.00  from holding Bitkub Coin or generate 81.29% return on investment over 90 days.

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

Bitkub Coin  vs.  Staked Ether

Bitkub Coin

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitkub Coin are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Bitkub Coin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Staked Ether

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Staked Ether are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Staked Ether exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitkub Coin and Staked Ether

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

The idea behind Bitkub Coin and Staked Ether 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.

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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .