Correlation Between Cosmos and BTC Standard

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Can any of the company-specific risk be diversified away by investing in both Cosmos and BTC Standard 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 Cosmos and BTC Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and BTC Standard Hashrate, you can compare the effects of market volatilities on Cosmos and BTC Standard 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 Cosmos with a short position of BTC Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and BTC Standard.

Diversification Opportunities for Cosmos and BTC Standard

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Cosmos and BTCST is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and BTC Standard Hashrate Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Standard Hashrate and Cosmos 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 Cosmos are associated (or correlated) with BTC Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Standard Hashrate has no effect on the direction of Cosmos i.e., Cosmos and BTC Standard go up and down completely randomly.

Pair Corralation between Cosmos and BTC Standard

Assuming the 90 days trading horizon Cosmos is expected to under-perform the BTC Standard. But the crypto coin apears to be less risky and, when comparing its historical volatility, Cosmos is 5.93 times less risky than BTC Standard. The crypto coin trades about -0.07 of its potential returns per unit of risk. The BTC Standard Hashrate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.00  in BTC Standard Hashrate on March 29, 2022 and sell it today you would earn a total of  577.00  from holding BTC Standard Hashrate or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy34.89%
ValuesDaily Returns

Cosmos  vs.  BTC Standard Hashrate Token

 Performance (%) 
      Timeline 
Cosmos 
Cosmos Performance
0 of 100
Over the last 90 days Cosmos has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for Cosmos investors.

Cosmos Price Channel

BTC Standard Hashrate 
BTCST Performance
0 of 100
Over the last 90 days BTC Standard Hashrate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for BTC Standard Hashrate investors.

BTCST Price Channel

Cosmos and BTC Standard Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cosmos and BTC Standard

The main advantage of trading using opposite Cosmos and BTC Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, BTC Standard 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 BTC Standard will offset losses from the drop in BTC Standard's long position.
The idea behind Cosmos and BTC Standard Hashrate 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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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