Correlation Between BitFrontier Capital and Hut 8
Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital and Hut 8 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 BitFrontier Capital and Hut 8 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFrontier Capital Holdings and Hut 8 Corp, you can compare the effects of market volatilities on BitFrontier Capital and Hut 8 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 BitFrontier Capital with a short position of Hut 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and Hut 8.
Diversification Opportunities for BitFrontier Capital and Hut 8
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BitFrontier and Hut is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and Hut 8 Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hut 8 Corp and BitFrontier Capital 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 BitFrontier Capital Holdings are associated (or correlated) with Hut 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hut 8 Corp has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and Hut 8 go up and down completely randomly.
Pair Corralation between BitFrontier Capital and Hut 8
Given the investment horizon of 90 days BitFrontier Capital is expected to generate 1.02 times less return on investment than Hut 8. In addition to that, BitFrontier Capital is 2.07 times more volatile than Hut 8 Corp. It trades about 0.15 of its total potential returns per unit of risk. Hut 8 Corp is currently generating about 0.31 per unit of volatility. If you would invest 1,718 in Hut 8 Corp on August 30, 2024 and sell it today you would earn a total of 1,127 from holding Hut 8 Corp or generate 65.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BitFrontier Capital Holdings vs. Hut 8 Corp
Performance |
| Timeline |
| BitFrontier Capital |
| Hut 8 Corp |
BitFrontier Capital and Hut 8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFrontier Capital and Hut 8
The main advantage of trading using opposite BitFrontier Capital and Hut 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital position performs unexpectedly, Hut 8 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 Hut 8 will offset losses from the drop in Hut 8's long position.| BitFrontier Capital vs. XTRA Bitcoin | BitFrontier Capital vs. Coin Citadel | BitFrontier Capital vs. Dmg Blockchain Solutions | BitFrontier Capital vs. Argo Blockchain PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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