Correlation Between Bagger Daves and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Bagger Daves and Bitmine Immersion 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 Bagger Daves and Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bagger Daves Burger and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Bagger Daves and Bitmine Immersion 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 Bagger Daves with a short position of Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bagger Daves and Bitmine Immersion.
Diversification Opportunities for Bagger Daves and Bitmine Immersion
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bagger and Bitmine is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bagger Daves Burger and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Bagger Daves 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 Bagger Daves Burger are associated (or correlated) with Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Bagger Daves i.e., Bagger Daves and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Bagger Daves and Bitmine Immersion
Given the investment horizon of 90 days Bagger Daves is expected to generate 2.68 times less return on investment than Bitmine Immersion. But when comparing it to its historical volatility, Bagger Daves Burger is 2.58 times less risky than Bitmine Immersion. It trades about 0.07 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 58.00 in Bitmine Immersion Technologies on August 28, 2024 and sell it today you would lose (23.00) from holding Bitmine Immersion Technologies or give up 39.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bagger Daves Burger vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Bagger Daves Burger |
| Bitmine Immersion |
Bagger Daves and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bagger Daves and Bitmine Immersion
The main advantage of trading using opposite Bagger Daves and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bagger Daves position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.| Bagger Daves vs. Alsea SAB de | Bagger Daves vs. Marstons PLC | Bagger Daves vs. Marstons PLC | Bagger Daves vs. Spot Coffee |
| Bitmine Immersion vs. LGL Group | Bitmine Immersion vs. Data IO | Bitmine Immersion vs. Sanmina | Bitmine Immersion vs. Plexus Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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