Correlation Between Ajinomoto and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Ajinomoto and Bit Origin 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 Ajinomoto and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ajinomoto Co ADR and Bit Origin, you can compare the effects of market volatilities on Ajinomoto and Bit Origin 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 Ajinomoto with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ajinomoto and Bit Origin.
Diversification Opportunities for Ajinomoto and Bit Origin
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ajinomoto and Bit is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ajinomoto Co ADR and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Ajinomoto 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 Ajinomoto Co ADR are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Ajinomoto i.e., Ajinomoto and Bit Origin go up and down completely randomly.
Pair Corralation between Ajinomoto and Bit Origin
Assuming the 90 days horizon Ajinomoto is expected to generate 14.85 times less return on investment than Bit Origin. But when comparing it to its historical volatility, Ajinomoto Co ADR is 5.01 times less risky than Bit Origin. It trades about 0.02 of its potential returns per unit of risk. Bit Origin is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 129.00 in Bit Origin on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Bit Origin or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Ajinomoto Co ADR vs. Bit Origin
Performance |
| Timeline |
| Ajinomoto Co ADR |
| Bit Origin |
Ajinomoto and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ajinomoto and Bit Origin
The main advantage of trading using opposite Ajinomoto and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ajinomoto position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.| Ajinomoto vs. Artisan Consumer Goods | Ajinomoto vs. Altavoz Entertainment | Ajinomoto vs. Avi Ltd ADR | Ajinomoto vs. The a2 Milk |
| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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