Correlation Between Blockmate Ventures and Bitcoin Well

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Can any of the company-specific risk be diversified away by investing in both Blockmate Ventures and Bitcoin Well 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 Blockmate Ventures and Bitcoin Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockmate Ventures and Bitcoin Well, you can compare the effects of market volatilities on Blockmate Ventures and Bitcoin Well 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 Blockmate Ventures with a short position of Bitcoin Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockmate Ventures and Bitcoin Well.

Diversification Opportunities for Blockmate Ventures and Bitcoin Well

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between Blockmate and Bitcoin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blockmate Ventures and Bitcoin Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Well and Blockmate Ventures 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 Blockmate Ventures are associated (or correlated) with Bitcoin Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Well has no effect on the direction of Blockmate Ventures i.e., Blockmate Ventures and Bitcoin Well go up and down completely randomly.

Pair Corralation between Blockmate Ventures and Bitcoin Well

Assuming the 90 days horizon Blockmate Ventures is expected to generate 1.16 times more return on investment than Bitcoin Well. However, Blockmate Ventures is 1.16 times more volatile than Bitcoin Well. It trades about 0.18 of its potential returns per unit of risk. Bitcoin Well is currently generating about 0.18 per unit of risk. If you would invest  2.75  in Blockmate Ventures on September 3, 2024 and sell it today you would earn a total of  6.74  from holding Blockmate Ventures or generate 245.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Blockmate Ventures  vs.  Bitcoin Well

 Performance 
       Timeline  
Blockmate Ventures 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Blockmate Ventures are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Blockmate Ventures reported solid returns over the last few months and may actually be approaching a breakup point.
Bitcoin Well 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Well are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bitcoin Well reported solid returns over the last few months and may actually be approaching a breakup point.

Blockmate Ventures and Bitcoin Well Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blockmate Ventures and Bitcoin Well

The main advantage of trading using opposite Blockmate Ventures and Bitcoin Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockmate Ventures position performs unexpectedly, Bitcoin Well 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 Well will offset losses from the drop in Bitcoin Well's long position.
The idea behind Blockmate Ventures and Bitcoin Well 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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