Correlation Between Bit Origin and Fresh Del
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Fresh Del 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 Fresh Del into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Fresh Del Monte, you can compare the effects of market volatilities on Bit Origin and Fresh Del 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 Fresh Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Fresh Del.
Diversification Opportunities for Bit Origin and Fresh Del
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bit and Fresh is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Fresh Del Monte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresh Del Monte 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 Fresh Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresh Del Monte has no effect on the direction of Bit Origin i.e., Bit Origin and Fresh Del go up and down completely randomly.
Pair Corralation between Bit Origin and Fresh Del
Given the investment horizon of 90 days Bit Origin is expected to under-perform the Fresh Del. In addition to that, Bit Origin is 5.39 times more volatile than Fresh Del Monte. It trades about -0.28 of its total potential returns per unit of risk. Fresh Del Monte is currently generating about 0.01 per unit of volatility. If you would invest 3,382 in Fresh Del Monte on September 19, 2024 and sell it today you would earn a total of 6.00 from holding Fresh Del Monte or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bit Origin vs. Fresh Del Monte
Performance |
| Timeline |
| Bit Origin |
| Fresh Del Monte |
Bit Origin and Fresh Del Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Fresh Del
The main advantage of trading using opposite Bit Origin and Fresh Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Fresh Del 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 Fresh Del will offset losses from the drop in Fresh Del's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Fresh Del vs. Better Choice | Fresh Del vs. Stryve Foods | Fresh Del vs. Koios Beverage Corp | Fresh Del vs. Bit Origin |
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.
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