Correlation Between Bitcoin SV and OmiseGO

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

Diversification Opportunities for Bitcoin SV and OmiseGO

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Bitcoin and OmiseGO is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and OmiseGO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OmiseGO 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 OmiseGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OmiseGO has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and OmiseGO go up and down completely randomly.

Pair Corralation between Bitcoin SV and OmiseGO

Assuming the 90 days trading horizon Bitcoin SV is expected to generate 0.98 times more return on investment than OmiseGO. However, Bitcoin SV is 1.02 times less risky than OmiseGO. It trades about 0.03 of its potential returns per unit of risk. OmiseGO is currently generating about -0.02 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.  OmiseGO

 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.
OmiseGO 

Risk-Adjusted Performance

10 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in OmiseGO are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, OmiseGO exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bitcoin SV and OmiseGO Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin SV and OmiseGO

The main advantage of trading using opposite Bitcoin SV and OmiseGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, OmiseGO 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 OmiseGO will offset losses from the drop in OmiseGO's long position.
The idea behind Bitcoin SV and OmiseGO 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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
CEOs Directory
Screen CEOs from public companies around the world
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Equity Valuation
Check real value of public entities based on technical and fundamental data
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Commodity Directory
Find actively traded commodities issued by global exchanges
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk