Correlation Between Bit Origin and YanGuFang International
Can any of the company-specific risk be diversified away by investing in both Bit Origin and YanGuFang International 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 YanGuFang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Origin and YanGuFang International Group, you can compare the effects of market volatilities on Bit Origin and YanGuFang International 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 YanGuFang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Origin and YanGuFang International.
Diversification Opportunities for Bit Origin and YanGuFang International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bit and YanGuFang is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International 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 YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Bit Origin i.e., Bit Origin and YanGuFang International go up and down completely randomly.
Pair Corralation between Bit Origin and YanGuFang International
Given the investment horizon of 90 days Bit Origin is expected to generate 1.01 times more return on investment than YanGuFang International. However, Bit Origin is 1.01 times more volatile than YanGuFang International Group. It trades about 0.01 of its potential returns per unit of risk. YanGuFang International Group is currently generating about -0.12 per unit of risk. If you would invest 807.00 in Bit Origin on August 27, 2024 and sell it today you would lose (666.00) from holding Bit Origin or give up 82.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 58.67% |
| Values | Daily Returns |
Bit Origin vs. YanGuFang International Group
Performance |
| Timeline |
| Bit Origin |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bit Origin and YanGuFang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Origin and YanGuFang International
The main advantage of trading using opposite Bit Origin and YanGuFang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Origin position performs unexpectedly, YanGuFang International 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 YanGuFang International will offset losses from the drop in YanGuFang International's long position.| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
| YanGuFang International vs. FitLife Brands, Common | YanGuFang International vs. SNDL Inc | YanGuFang International vs. Dave Busters Entertainment | YanGuFang International vs. Hf Foods Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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