Correlation Between DeFi Technologies and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both DeFi Technologies 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 DeFi Technologies and HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DeFi Technologies and HIVE Blockchain Technologies, you can compare the effects of market volatilities on DeFi Technologies 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 DeFi Technologies with a short position of HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of DeFi Technologies and HIVE Blockchain.
Diversification Opportunities for DeFi Technologies and HIVE Blockchain
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DeFi and HIVE is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding DeFi Technologies 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 DeFi Technologies 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 DeFi Technologies 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 DeFi Technologies i.e., DeFi Technologies and HIVE Blockchain go up and down completely randomly.
Pair Corralation between DeFi Technologies and HIVE Blockchain
Assuming the 90 days horizon DeFi Technologies is expected to generate 0.97 times more return on investment than HIVE Blockchain. However, DeFi Technologies is 1.03 times less risky than HIVE Blockchain. It trades about 0.27 of its potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.11 per unit of risk. If you would invest 178.00 in DeFi Technologies on August 26, 2024 and sell it today you would earn a total of 80.00 from holding DeFi Technologies or generate 44.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DeFi Technologies vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| DeFi Technologies |
| HIVE Blockchain Tech |
DeFi Technologies and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DeFi Technologies and HIVE Blockchain
The main advantage of trading using opposite DeFi Technologies and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DeFi Technologies 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.| DeFi Technologies vs. Argo Blockchain PLC | DeFi Technologies vs. DigiMax Global | DeFi Technologies vs. Galaxy Digital Holdings | DeFi Technologies 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 Stocks Directory module to find actively traded stocks across global markets.
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