Correlation Between Bit Origin and Whole Earth
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Whole Earth 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 Whole Earth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Whole Earth Brands, you can compare the effects of market volatilities on Bit Origin and Whole Earth 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 Whole Earth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Whole Earth.
Diversification Opportunities for Bit Origin and Whole Earth
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bit and Whole is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Whole Earth Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whole Earth Brands 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 Whole Earth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whole Earth Brands has no effect on the direction of Bit Origin i.e., Bit Origin and Whole Earth go up and down completely randomly.
Pair Corralation between Bit Origin and Whole Earth
Given the investment horizon of 90 days Bit Origin is expected to generate 1.49 times more return on investment than Whole Earth. However, Bit Origin is 1.49 times more volatile than Whole Earth Brands. It trades about 0.01 of its potential returns per unit of risk. Whole Earth Brands is currently generating about -0.02 per unit of risk. If you would invest 747.00 in Bit Origin on August 30, 2024 and sell it today you would lose (609.00) from holding Bit Origin or give up 81.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.87% |
| Values | Daily Returns |
Bit Origin vs. Whole Earth Brands
Performance |
| Timeline |
| Bit Origin |
| Whole Earth Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bit Origin and Whole Earth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Whole Earth
The main advantage of trading using opposite Bit Origin and Whole Earth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Whole Earth 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 Whole Earth will offset losses from the drop in Whole Earth's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Whole Earth vs. Seneca Foods Corp | Whole Earth vs. Lifeway Foods | Whole Earth vs. John B Sanfilippo | Whole Earth vs. Real Good Food |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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