Correlation Between Big Time and Hivemapper
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By analyzing existing cross correlation between Big Time and Hivemapper, you can compare the effects of market volatilities on Big Time and Hivemapper 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 Time with a short position of Hivemapper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Time and Hivemapper.
Diversification Opportunities for Big Time and Hivemapper
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Big and Hivemapper is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Big Time and Hivemapper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hivemapper and Big Time 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 Time are associated (or correlated) with Hivemapper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hivemapper has no effect on the direction of Big Time i.e., Big Time and Hivemapper go up and down completely randomly.
Pair Corralation between Big Time and Hivemapper
Assuming the 90 days trading horizon Big Time is expected to generate 2.73 times less return on investment than Hivemapper. But when comparing it to its historical volatility, Big Time is 1.19 times less risky than Hivemapper. It trades about 0.14 of its potential returns per unit of risk. Hivemapper is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 5.02 in Hivemapper on September 4, 2024 and sell it today you would earn a total of 3.77 from holding Hivemapper or generate 75.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Big Time vs. Hivemapper
Performance |
| Timeline |
| Big Time |
| Hivemapper |
Big Time and Hivemapper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Time and Hivemapper
The main advantage of trading using opposite Big Time and Hivemapper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Time position performs unexpectedly, Hivemapper 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 Hivemapper will offset losses from the drop in Hivemapper's long position.The idea behind Big Time and Hivemapper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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