Correlation Between Bit Origin and Beyond Oil
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Beyond Oil 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 Origin and Beyond Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Beyond Oil, you can compare the effects of market volatilities on Bit Origin and Beyond Oil 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 Origin with a short position of Beyond Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Beyond Oil.
Diversification Opportunities for Bit Origin and Beyond Oil
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bit and Beyond is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Beyond Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Oil and Bit Origin 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 Origin are associated (or correlated) with Beyond Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Oil has no effect on the direction of Bit Origin i.e., Bit Origin and Beyond Oil go up and down completely randomly.
Pair Corralation between Bit Origin and Beyond Oil
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Beyond Oil. In addition to that, Bit Origin is 1.18 times more volatile than Beyond Oil. It trades about -0.06 of its total potential returns per unit of risk. Beyond Oil is currently generating about 0.07 per unit of volatility. If you would invest 79.00 in Beyond Oil on August 24, 2024 and sell it today you would earn a total of 31.00 from holding Beyond Oil or generate 39.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bit Origin vs. Beyond Oil
Performance |
| Timeline |
| Bit Origin |
| Beyond Oil |
Bit Origin and Beyond Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Beyond Oil
The main advantage of trading using opposite Bit Origin and Beyond Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Beyond Oil 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 Beyond Oil will offset losses from the drop in Beyond Oil's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Beyond Oil vs. Legacy Education | Beyond Oil vs. NVIDIA | Beyond Oil vs. Apple Inc | Beyond Oil vs. Microsoft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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