Correlation Between Bitcoin Gold and OKB
Can any of the company-specific risk be diversified away by investing in both Bitcoin Gold and OKB 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 Gold and OKB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Gold and OKB, you can compare the effects of market volatilities on Bitcoin Gold and OKB 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 Gold with a short position of OKB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Gold and OKB.
Diversification Opportunities for Bitcoin Gold and OKB
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bitcoin and OKB is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Gold and OKB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OKB and Bitcoin Gold 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 Gold are associated (or correlated) with OKB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OKB has no effect on the direction of Bitcoin Gold i.e., Bitcoin Gold and OKB go up and down completely randomly.
Pair Corralation between Bitcoin Gold and OKB
Assuming the 90 days trading horizon Bitcoin Gold is expected to under-perform the OKB. In addition to that, Bitcoin Gold is 1.25 times more volatile than OKB. It trades about -0.22 of its total potential returns per unit of risk. OKB is currently generating about -0.22 per unit of volatility. If you would invest 6,666 in OKB on January 25, 2024 and sell it today you would lose (1,175) from holding OKB or give up 17.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bitcoin Gold vs. OKB
Performance |
Timeline |
Bitcoin Gold |
OKB |
Bitcoin Gold and OKB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin Gold and OKB
The main advantage of trading using opposite Bitcoin Gold and OKB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Gold position performs unexpectedly, OKB 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 OKB will offset losses from the drop in OKB's long position.Bitcoin Gold vs. Bitcoin | Bitcoin Gold vs. Dogecoin | Bitcoin Gold vs. Bitcoin Cash | Bitcoin Gold vs. Litecoin |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |