Correlation Between Definitive and Bitcoin Gold

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

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

Diversification Opportunities for Definitive and Bitcoin Gold

-0.5

Correlation Coefficient

Definitive  Bitcoin Gold

Very good diversification

The 3 months correlation between Definitive and Bitcoin is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Definitive and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and Definitive 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 Definitive 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 Definitive i.e., Definitive and Bitcoin Gold go up and down completely randomly.

Pair Corralation between Definitive and Bitcoin Gold

Assuming the 90 days trading horizon Definitive is expected to generate 11.98 times less return on investment than Bitcoin Gold. But when comparing it to its historical volatility, Definitive is 3.07 times less risky than Bitcoin Gold. It trades about 0.02 of its potential returns per unit of risk. Bitcoin Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  143.00  in Bitcoin Gold on August 6, 2025 and sell it today you would lose (72.00) from holding Bitcoin Gold or give up 50.35% of portfolio value over 90 days.

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

Definitive  vs.  Bitcoin Gold

Definitive

Risk-Adjusted Performance

Soft

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

Bitcoin Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Gold are ranked lower than 12 (%) 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 Definitive and Bitcoin Gold

The main advantage of trading using opposite Definitive and Bitcoin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Definitive 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 Definitive 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.