Correlation Between Tether and BOUNTY

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

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

Diversification Opportunities for Tether and BOUNTY

0.0

Correlation Coefficient

Tether  BOUNTY

Pay attention - limited upside

The 3 months correlation between Tether and BOUNTY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tether and BOUNTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOUNTY and Tether 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 Tether are associated (or correlated) with BOUNTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOUNTY has no effect on the direction of Tether i.e., Tether and BOUNTY go up and down completely randomly.

Pair Corralation between Tether and BOUNTY

If you would invest  7.04  in BOUNTY on April 20, 2025 and sell it today you would lose (4.84) from holding BOUNTY or give up 68.75% of portfolio value over 90 days.

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

Tether  vs.  BOUNTY

Tether

Risk-Adjusted Performance

Very Weak

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

BOUNTY

Risk-Adjusted Performance

Very Weak

Over the last 90 days BOUNTY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for BOUNTY investors.

Pair Trading with Tether and BOUNTY

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

The idea behind Tether and BOUNTY 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.