Correlation Between DigiMax Global and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both DigiMax Global and HIVE Blockchain 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 DigiMax Global and HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiMax Global and HIVE Blockchain Technologies, you can compare the effects of market volatilities on DigiMax Global and HIVE Blockchain 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 DigiMax Global with a short position of HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiMax Global and HIVE Blockchain.
Diversification Opportunities for DigiMax Global and HIVE Blockchain
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between DigiMax and HIVE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech and DigiMax Global 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 DigiMax Global are associated (or correlated) with HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of DigiMax Global i.e., DigiMax Global and HIVE Blockchain go up and down completely randomly.
Pair Corralation between DigiMax Global and HIVE Blockchain
Assuming the 90 days horizon DigiMax Global is expected to under-perform the HIVE Blockchain. In addition to that, DigiMax Global is 1.46 times more volatile than HIVE Blockchain Technologies. It trades about -0.21 of its total potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.11 per unit of volatility. If you would invest 363.00 in HIVE Blockchain Technologies on August 26, 2024 and sell it today you would earn a total of 46.00 from holding HIVE Blockchain Technologies or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DigiMax Global vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| DigiMax Global |
| HIVE Blockchain Tech |
DigiMax Global and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiMax Global and HIVE Blockchain
The main advantage of trading using opposite DigiMax Global and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global position performs unexpectedly, HIVE Blockchain 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 HIVE Blockchain will offset losses from the drop in HIVE Blockchain's long position.| DigiMax Global vs. DeFi Technologies | DigiMax Global vs. Argo Blockchain PLC | DigiMax Global vs. Galaxy Digital Holdings | DigiMax Global vs. BIG Blockchain Intelligence |
| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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