RE: Cross-Asset Correlation Analysis
You define Correlation in simple terms is like finding the friendship or enmity between two or more things.Yes very true. According to you Cross-asset simply refers to the idea of looking at two or more types of investments all together. Now you have combined these two and given us a full definition of these two.
Cross correlation work UpTo great extant in market. It decreases the risk of only investing in one market. If that market goes down, all your portfolio will be at lost, very less chance for you. Now if their is diversification in your portfolio management, you can avoid great risk. Must go for negative correlate assets class.
You have beautifully shown Steem to us in relation with Bitcoin and Ethereum. Currently we can say that both steem and BTC are in correlation with each other, both are moving in upward trend.
Wish you good luck in the contest friend.
Thank you, friend. I'm glad you found my explanation of correlation and cross-asset helpful. It's true that cross correlation plays a crucial role in the market. By diversifying your portfolio and including assets that have a negative correlation, you can minimize the risk of losing everything if one market goes down. It's great that you noticed the correlation between Steem, Bitcoin, and Ethereum. Currently, they seem to be moving in an upward trend together. Good luck to you too, my friend.