Correlation Between Broadridge Financial and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Broadridge Financial and BIT Mining 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 Broadridge Financial and BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadridge Financial Solutions and BIT Mining, you can compare the effects of market volatilities on Broadridge Financial and BIT Mining 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 Broadridge Financial with a short position of BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadridge Financial and BIT Mining.
Diversification Opportunities for Broadridge Financial and BIT Mining
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Broadridge and BIT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Broadridge Financial Solutions and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and Broadridge Financial 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 Broadridge Financial Solutions are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Broadridge Financial i.e., Broadridge Financial and BIT Mining go up and down completely randomly.
Pair Corralation between Broadridge Financial and BIT Mining
Allowing for the 90-day total investment horizon Broadridge Financial Solutions is expected to generate 0.2 times more return on investment than BIT Mining. However, Broadridge Financial Solutions is 5.04 times less risky than BIT Mining. It trades about 0.33 of its potential returns per unit of risk. BIT Mining is currently generating about -0.03 per unit of risk. If you would invest 21,370 in Broadridge Financial Solutions on August 27, 2024 and sell it today you would earn a total of 1,654 from holding Broadridge Financial Solutions or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadridge Financial Solutions vs. BIT Mining
Performance |
| Timeline |
| Broadridge Financial |
| BIT Mining |
Broadridge Financial and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadridge Financial and BIT Mining
The main advantage of trading using opposite Broadridge Financial and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadridge Financial position performs unexpectedly, BIT Mining 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 Mining will offset losses from the drop in BIT Mining's long position.| Broadridge Financial vs. Oneconnect Financial Technology | Broadridge Financial vs. Global Business Travel | Broadridge Financial vs. Alight Inc | Broadridge Financial vs. CS Disco LLC |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |