Correlation Between Wrapped Bitcoin and Golem Network
Can any of the company-specific risk be diversified away by investing in both Wrapped Bitcoin and Golem Network 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 Wrapped Bitcoin and Golem Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wrapped Bitcoin and Golem Network Token, you can compare the effects of market volatilities on Wrapped Bitcoin and Golem Network 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 Wrapped Bitcoin with a short position of Golem Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wrapped Bitcoin and Golem Network.
Diversification Opportunities for Wrapped Bitcoin and Golem Network
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wrapped and Golem is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Wrapped Bitcoin and Golem Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golem Network Token and Wrapped Bitcoin 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 Wrapped Bitcoin are associated (or correlated) with Golem Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golem Network Token has no effect on the direction of Wrapped Bitcoin i.e., Wrapped Bitcoin and Golem Network go up and down completely randomly.
Pair Corralation between Wrapped Bitcoin and Golem Network
Assuming the 90 days trading horizon Wrapped Bitcoin is expected to generate 0.45 times more return on investment than Golem Network. However, Wrapped Bitcoin is 2.23 times less risky than Golem Network. It trades about 0.15 of its potential returns per unit of risk. Golem Network Token is currently generating about 0.04 per unit of risk. If you would invest 10,884,500 in Wrapped Bitcoin on April 24, 2025 and sell it today you would earn a total of 1,127,600 from holding Wrapped Bitcoin or generate 10.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Wrapped Bitcoin vs. Golem Network Token
Performance |
Timeline |
Wrapped Bitcoin |
Golem Network Token |
Wrapped Bitcoin and Golem Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wrapped Bitcoin and Golem Network
The main advantage of trading using opposite Wrapped Bitcoin and Golem Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wrapped Bitcoin position performs unexpectedly, Golem Network 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 Golem Network will offset losses from the drop in Golem Network's long position.Wrapped Bitcoin vs. Staked Ether | Wrapped Bitcoin vs. Cronos | Wrapped Bitcoin vs. Monero | Wrapped Bitcoin vs. Tether |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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