Correlation Between Bitcoin SV and Bitcoin Gold

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

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

Diversification Opportunities for Bitcoin SV and Bitcoin Gold

-0.15

Correlation Coefficient

Bitcoin SV  Bitcoin Gold

Good diversification

The 3 months correlation between Bitcoin and Bitcoin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and Bitcoin SV 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 SV are associated (or correlated) with Bitcoin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Gold has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and Bitcoin Gold go up and down completely randomly.

Pair Corralation between Bitcoin SV and Bitcoin Gold

Assuming the 90 days trading horizon Bitcoin SV is expected to under-perform the Bitcoin Gold. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin SV is 17.46 times less risky than Bitcoin Gold. The crypto coin trades about 0.0 of its potential returns per unit of risk. The Bitcoin Gold is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  48.00  in Bitcoin Gold on March 25, 2025 and sell it today you would earn a total of  25.00  from holding Bitcoin Gold or generate 52.08% return on investment over 90 days.

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

Bitcoin SV  vs.  Bitcoin Gold

Bitcoin SV

Risk-Adjusted Performance

Very Weak

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

Bitcoin Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Gold are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Bitcoin Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin SV and Bitcoin Gold

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

The idea behind Bitcoin SV and Bitcoin Gold 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.