Correlation Between Scepter Holdings and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Scepter Holdings and Bit Origin 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 Scepter Holdings and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scepter Holdings and Bit Origin, you can compare the effects of market volatilities on Scepter Holdings and Bit Origin 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 Scepter Holdings with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scepter Holdings and Bit Origin.
Diversification Opportunities for Scepter Holdings and Bit Origin
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scepter and Bit is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Scepter Holdings and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Scepter Holdings 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 Scepter Holdings are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Scepter Holdings i.e., Scepter Holdings and Bit Origin go up and down completely randomly.
Pair Corralation between Scepter Holdings and Bit Origin
Given the investment horizon of 90 days Scepter Holdings is expected to generate 2.59 times more return on investment than Bit Origin. However, Scepter Holdings is 2.59 times more volatile than Bit Origin. It trades about 0.1 of its potential returns per unit of risk. Bit Origin is currently generating about -0.06 per unit of risk. If you would invest 0.06 in Scepter Holdings on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Scepter Holdings or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scepter Holdings vs. Bit Origin
Performance |
| Timeline |
| Scepter Holdings |
| Bit Origin |
Scepter Holdings and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scepter Holdings and Bit Origin
The main advantage of trading using opposite Scepter Holdings and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scepter Holdings position performs unexpectedly, Bit Origin 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 Origin will offset losses from the drop in Bit Origin's long position.| Scepter Holdings vs. Qed Connect | Scepter Holdings vs. Nates Food Co | Scepter Holdings vs. Sharing Services Global | Scepter Holdings vs. Stryve Foods |
| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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