Correlation Between BIG Blockchain and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both BIG Blockchain and HIVE Blockchain 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 BIG Blockchain and HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIG Blockchain Intelligence and HIVE Blockchain Technologies, you can compare the effects of market volatilities on BIG Blockchain and HIVE Blockchain 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 BIG Blockchain with a short position of HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIG Blockchain and HIVE Blockchain.
Diversification Opportunities for BIG Blockchain and HIVE Blockchain
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BIG and HIVE is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BIG Blockchain Intelligence and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech and BIG Blockchain 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 BIG Blockchain Intelligence are associated (or correlated) with HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of BIG Blockchain i.e., BIG Blockchain and HIVE Blockchain go up and down completely randomly.
Pair Corralation between BIG Blockchain and HIVE Blockchain
Assuming the 90 days horizon BIG Blockchain is expected to generate 1.87 times less return on investment than HIVE Blockchain. In addition to that, BIG Blockchain is 1.16 times more volatile than HIVE Blockchain Technologies. It trades about 0.02 of its total potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.05 per unit of volatility. If you would invest 204.00 in HIVE Blockchain Technologies on August 26, 2024 and sell it today you would earn a total of 205.00 from holding HIVE Blockchain Technologies or generate 100.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIG Blockchain Intelligence vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| BIG Blockchain Intel |
| HIVE Blockchain Tech |
BIG Blockchain and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIG Blockchain and HIVE Blockchain
The main advantage of trading using opposite BIG Blockchain and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIG Blockchain position performs unexpectedly, HIVE Blockchain 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 HIVE Blockchain will offset losses from the drop in HIVE Blockchain's long position.| BIG Blockchain vs. DeFi Technologies | BIG Blockchain vs. Argo Blockchain PLC | BIG Blockchain vs. DigiMax Global | BIG Blockchain vs. Galaxy Digital Holdings |
| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets |