Correlation Between Bit Origin and Central Garden
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Central Garden 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 Central Garden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Central Garden Pet, you can compare the effects of market volatilities on Bit Origin and Central Garden 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 Central Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Central Garden.
Diversification Opportunities for Bit Origin and Central Garden
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bit and Central is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Central Garden Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Garden Pet 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 Central Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Garden Pet has no effect on the direction of Bit Origin i.e., Bit Origin and Central Garden go up and down completely randomly.
Pair Corralation between Bit Origin and Central Garden
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Central Garden. In addition to that, Bit Origin is 3.78 times more volatile than Central Garden Pet. It trades about -0.32 of its total potential returns per unit of risk. Central Garden Pet is currently generating about -0.11 per unit of volatility. If you would invest 3,814 in Central Garden Pet on November 3, 2024 and sell it today you would lose (165.00) from holding Central Garden Pet or give up 4.33% 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. Central Garden Pet
Performance |
| Timeline |
| Bit Origin |
| Central Garden Pet |
Bit Origin and Central Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Central Garden
The main advantage of trading using opposite Bit Origin and Central Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Central Garden 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 Central Garden will offset losses from the drop in Central Garden's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Central Garden vs. McCormick Company Incorporated | Central Garden vs. Natures Sunshine Products | Central Garden vs. Seneca Foods Corp | Central Garden vs. Central Garden Pet |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |