Correlation Between Bit Digital and NV Bekaert
Can any of the company-specific risk be diversified away by investing in both Bit Digital and NV Bekaert 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 Bit Digital and NV Bekaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Digital and NV Bekaert SA, you can compare the effects of market volatilities on Bit Digital and NV Bekaert 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 Bit Digital with a short position of NV Bekaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Digital and NV Bekaert.
Diversification Opportunities for Bit Digital and NV Bekaert
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bit and BEKAY is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bit Digital and NV Bekaert SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NV Bekaert SA and Bit Digital 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 Bit Digital are associated (or correlated) with NV Bekaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NV Bekaert SA has no effect on the direction of Bit Digital i.e., Bit Digital and NV Bekaert go up and down completely randomly.
Pair Corralation between Bit Digital and NV Bekaert
Given the investment horizon of 90 days Bit Digital is expected to generate 2.5 times more return on investment than NV Bekaert. However, Bit Digital is 2.5 times more volatile than NV Bekaert SA. It trades about 0.09 of its potential returns per unit of risk. NV Bekaert SA is currently generating about 0.02 per unit of risk. If you would invest 75.00 in Bit Digital on September 3, 2024 and sell it today you would earn a total of 384.00 from holding Bit Digital or generate 512.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 61.62% |
| Values | Daily Returns |
Bit Digital vs. NV Bekaert SA
Performance |
| Timeline |
| Bit Digital |
| NV Bekaert SA |
Bit Digital and NV Bekaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Digital and NV Bekaert
The main advantage of trading using opposite Bit Digital and NV Bekaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Digital position performs unexpectedly, NV Bekaert 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 NV Bekaert will offset losses from the drop in NV Bekaert's long position.| Bit Digital vs. Hut 8 Corp | Bit Digital vs. HIVE Blockchain Technologies | Bit Digital vs. CleanSpark | Bit Digital vs. Terawulf |
| NV Bekaert vs. Thyssenkrupp AG ON | NV Bekaert vs. Mueller Industries | NV Bekaert vs. Insteel Industries | NV Bekaert vs. Carpenter Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |