Correlation Between Bit Origin and Scepter Holdings
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Scepter Holdings 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 Scepter Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Scepter Holdings, you can compare the effects of market volatilities on Bit Origin and Scepter Holdings 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 Scepter Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Scepter Holdings.
Diversification Opportunities for Bit Origin and Scepter Holdings
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bit and Scepter is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Scepter Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scepter Holdings 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 Scepter Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scepter Holdings has no effect on the direction of Bit Origin i.e., Bit Origin and Scepter Holdings go up and down completely randomly.
Pair Corralation between Bit Origin and Scepter Holdings
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Scepter Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Bit Origin is 3.94 times less risky than Scepter Holdings. The stock trades about -0.18 of its potential returns per unit of risk. The Scepter Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 0.16 in Scepter Holdings on August 31, 2024 and sell it today you would lose (0.09) from holding Scepter Holdings or give up 56.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bit Origin vs. Scepter Holdings
Performance |
| Timeline |
| Bit Origin |
| Scepter Holdings |
Bit Origin and Scepter Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Scepter Holdings
The main advantage of trading using opposite Bit Origin and Scepter Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Scepter Holdings 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 Scepter Holdings will offset losses from the drop in Scepter Holdings' long position.| Bit Origin vs. Laird Superfood | Bit Origin vs. Stryve Foods | Bit Origin vs. Aquagold International | Bit Origin vs. Thrivent High Yield |
| Scepter Holdings vs. The A2 Milk | Scepter Holdings vs. Altavoz Entertainment | Scepter Holdings vs. Artisan Consumer Goods | Scepter Holdings vs. Avi Ltd ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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