Correlation Between Bitcoin SV and Cronos

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

Diversification Opportunities for Bitcoin SV and Cronos

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Bitcoin and Cronos is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and Cronos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos 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 Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and Cronos go up and down completely randomly.

Pair Corralation between Bitcoin SV and Cronos

Assuming the 90 days trading horizon Bitcoin SV is expected to generate 1.12 times more return on investment than Cronos. However, Bitcoin SV is 1.12 times more volatile than Cronos. It trades about 0.03 of its potential returns per unit of risk. Cronos is currently generating about -0.01 per unit of risk. If you would invest  8,282  in Bitcoin SV on December 30, 2023 and sell it today you would earn a total of  1,024  from holding Bitcoin SV or generate 12.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Bitcoin SV  vs.  Cronos

 Performance 
       Timeline  
Bitcoin SV 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin SV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bitcoin SV exhibited solid returns over the last few months and may actually be approaching a breakup point.
Cronos 

Risk-Adjusted Performance

14 of 100

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

Bitcoin SV and Cronos Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin SV and Cronos

The main advantage of trading using opposite Bitcoin SV and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' long position.
The idea behind Bitcoin SV and Cronos 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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Fundamental Analysis
View fundamental data based on most recent published financial statements
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Technical Analysis
Check basic technical indicators and analysis based on most latest market data