Correlation Between Bit Origin and NuVim
Can any of the company-specific risk be diversified away by investing in both Bit Origin and NuVim 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 NuVim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and NuVim Inc, you can compare the effects of market volatilities on Bit Origin and NuVim 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 NuVim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and NuVim.
Diversification Opportunities for Bit Origin and NuVim
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bit and NuVim is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and NuVim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuVim Inc 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 NuVim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuVim Inc has no effect on the direction of Bit Origin i.e., Bit Origin and NuVim go up and down completely randomly.
Pair Corralation between Bit Origin and NuVim
Given the investment horizon of 90 days Bit Origin is expected to under-perform the NuVim. But the stock apears to be less risky and, when comparing its historical volatility, Bit Origin is 1.3 times less risky than NuVim. The stock trades about -0.06 of its potential returns per unit of risk. The NuVim Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 0.60 in NuVim Inc on September 2, 2024 and sell it today you would lose (0.20) from holding NuVim Inc or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bit Origin vs. NuVim Inc
Performance |
| Timeline |
| Bit Origin |
| NuVim Inc |
Bit Origin and NuVim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and NuVim
The main advantage of trading using opposite Bit Origin and NuVim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, NuVim 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 NuVim will offset losses from the drop in NuVim's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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