Correlation Between Bit Origin and TDH Holdings
Can any of the company-specific risk be diversified away by investing in both Bit Origin and TDH 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 TDH 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 TDH Holdings, you can compare the effects of market volatilities on Bit Origin and TDH 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 TDH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and TDH Holdings.
Diversification Opportunities for Bit Origin and TDH Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bit and TDH is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and TDH Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDH 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 TDH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDH Holdings has no effect on the direction of Bit Origin i.e., Bit Origin and TDH Holdings go up and down completely randomly.
Pair Corralation between Bit Origin and TDH Holdings
Given the investment horizon of 90 days Bit Origin is expected to under-perform the TDH Holdings. In addition to that, Bit Origin is 1.98 times more volatile than TDH Holdings. It trades about -0.04 of its total potential returns per unit of risk. TDH Holdings is currently generating about 0.03 per unit of volatility. If you would invest 108.00 in TDH Holdings on August 27, 2024 and sell it today you would earn a total of 8.00 from holding TDH Holdings or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bit Origin vs. TDH Holdings
Performance |
| Timeline |
| Bit Origin |
| TDH Holdings |
Bit Origin and TDH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and TDH Holdings
The main advantage of trading using opposite Bit Origin and TDH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, TDH 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 TDH Holdings will offset losses from the drop in TDH Holdings' long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| TDH Holdings vs. Bit Origin | TDH Holdings vs. Laird Superfood | TDH Holdings vs. Planet Green Holdings | TDH Holdings vs. Stryve Foods |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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