Correlation Between Bitcoin Cash and LEO Token

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and LEO Token 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 Bitcoin Cash and LEO Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and LEO Token, you can compare the effects of market volatilities on Bitcoin Cash and LEO Token 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 Bitcoin Cash with a short position of LEO Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and LEO Token.

Diversification Opportunities for Bitcoin Cash and LEO Token

0.92
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Bitcoin and LEO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and LEO Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEO Token and Bitcoin Cash 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 Bitcoin Cash are associated (or correlated) with LEO Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEO Token has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and LEO Token go up and down completely randomly.

Pair Corralation between Bitcoin Cash and LEO Token

Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 3.76 times more return on investment than LEO Token. However, Bitcoin Cash is 3.76 times more volatile than LEO Token. It trades about 0.25 of its potential returns per unit of risk. LEO Token is currently generating about 0.46 per unit of risk. If you would invest  29,679  in Bitcoin Cash on December 29, 2023 and sell it today you would earn a total of  24,664  from holding Bitcoin Cash or generate 83.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Bitcoin Cash  vs.  LEO Token

 Performance 
       Timeline  
Bitcoin Cash 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Cash are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Bitcoin Cash exhibited solid returns over the last few months and may actually be approaching a breakup point.
LEO Token 

Risk-Adjusted Performance

20 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in LEO Token are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, LEO Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bitcoin Cash and LEO Token Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin Cash and LEO Token

The main advantage of trading using opposite Bitcoin Cash and LEO Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, LEO Token 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 LEO Token will offset losses from the drop in LEO Token's long position.
The idea behind Bitcoin Cash and LEO Token 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Global Correlations
Find global opportunities by holding instruments from different markets
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
CEOs Directory
Screen CEOs from public companies around the world