Correlation Between Bit Digital and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both Bit Digital and HIVE Blockchain 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 HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Digital and HIVE Blockchain Technologies, you can compare the effects of market volatilities on Bit Digital and HIVE Blockchain 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 HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Digital and HIVE Blockchain.
Diversification Opportunities for Bit Digital and HIVE Blockchain
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bit and HIVE is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bit Digital and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech 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 HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of Bit Digital i.e., Bit Digital and HIVE Blockchain go up and down completely randomly.
Pair Corralation between Bit Digital and HIVE Blockchain
Given the investment horizon of 90 days Bit Digital is expected to generate 1.29 times more return on investment than HIVE Blockchain. However, Bit Digital is 1.29 times more volatile than HIVE Blockchain Technologies. It trades about 0.04 of its potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about -0.01 per unit of risk. If you would invest 193.00 in Bit Digital on December 14, 2024 and sell it today you would earn a total of 34.00 from holding Bit Digital or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.56% |
| Values | Daily Returns |
Bit Digital vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| Bit Digital |
| HIVE Blockchain Tech |
Bit Digital and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Digital and HIVE Blockchain
The main advantage of trading using opposite Bit Digital and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Digital position performs unexpectedly, HIVE Blockchain 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 HIVE Blockchain will offset losses from the drop in HIVE Blockchain's long position.| Bit Digital vs. Hut 8 Corp | ||
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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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