Correlation Between Travala and Bitcoin Gold

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Travala 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 Travala and Bitcoin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Travala and Bitcoin Gold, you can compare the effects of market volatilities on Travala 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 Travala with a short position of Bitcoin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travala and Bitcoin Gold.

Diversification Opportunities for Travala and Bitcoin Gold

0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Travala and Bitcoin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Travala and Bitcoin Gold in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and Travala 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 Travala 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 Travala i.e., Travala and Bitcoin Gold go up and down completely randomly.

Pair Corralation between Travala and Bitcoin Gold

Assuming the 90 days trading horizon Travala is expected to under-perform the Bitcoin Gold. In addition to that, Travala is 1.67 times more volatile than Bitcoin Gold. It trades about -0.26 of its total potential returns per unit of risk. Bitcoin Gold is currently generating about -0.41 per unit of volatility. If you would invest  3,552  in Bitcoin Gold on February 16, 2022 and sell it today you would lose (1,614)  from holding Bitcoin Gold or give up 45.44% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Travala  vs.  Bitcoin Gold

 Performance (%) 
      Timeline 
Travala 
Travala Performance
0 of 100
Over the last 90 days Travala 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 June 2022. The current disturbance may also be a sign of long term up-swing for Travala investors.

Travala Price Channel

Bitcoin Gold 
Bitcoin Performance
0 of 100
Over the last 90 days Bitcoin Gold 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 June 2022. The current disturbance may also be a sign of long term up-swing for Bitcoin Gold investors.

Bitcoin Price Channel

Travala and Bitcoin Gold Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Travala and Bitcoin Gold

The main advantage of trading using opposite Travala and Bitcoin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travala 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 Travala 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.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go