Correlation Between Bit Origin and Steakholder Foods
Can any of the company-specific risk be diversified away by investing in both Bit Origin and Steakholder Foods 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 Steakholder Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and Steakholder Foods, you can compare the effects of market volatilities on Bit Origin and Steakholder Foods 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 Steakholder Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and Steakholder Foods.
Diversification Opportunities for Bit Origin and Steakholder Foods
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bit and Steakholder is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Steakholder Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steakholder Foods 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 Steakholder Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steakholder Foods has no effect on the direction of Bit Origin i.e., Bit Origin and Steakholder Foods go up and down completely randomly.
Pair Corralation between Bit Origin and Steakholder Foods
Given the investment horizon of 90 days Bit Origin is expected to generate 2.06 times more return on investment than Steakholder Foods. However, Bit Origin is 2.06 times more volatile than Steakholder Foods. It trades about -0.06 of its potential returns per unit of risk. Steakholder Foods is currently generating about -0.12 per unit of risk. If you would invest 508.00 in Bit Origin on November 3, 2024 and sell it today you would lose (449.00) from holding Bit Origin or give up 88.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bit Origin vs. Steakholder Foods
Performance |
| Timeline |
| Bit Origin |
| Steakholder Foods |
Bit Origin and Steakholder Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and Steakholder Foods
The main advantage of trading using opposite Bit Origin and Steakholder Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, Steakholder Foods 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 Steakholder Foods will offset losses from the drop in Steakholder Foods' long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| Steakholder Foods vs. Farmmi Inc | Steakholder Foods vs. Herbalife Nutrition | Steakholder Foods vs. Beyond Meat | Steakholder Foods 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |