Correlation Between Dug Technology and BTC Health
Can any of the company-specific risk be diversified away by investing in both Dug Technology and BTC Health 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 Dug Technology and BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dug Technology and BTC Health Limited, you can compare the effects of market volatilities on Dug Technology and BTC Health 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 Dug Technology with a short position of BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and BTC Health.
Diversification Opportunities for Dug Technology and BTC Health
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dug and BTC is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited and Dug Technology 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 Dug Technology are associated (or correlated) with BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Dug Technology i.e., Dug Technology and BTC Health go up and down completely randomly.
Pair Corralation between Dug Technology and BTC Health
Assuming the 90 days trading horizon Dug Technology is expected to generate 0.44 times more return on investment than BTC Health. However, Dug Technology is 2.27 times less risky than BTC Health. It trades about 0.07 of its potential returns per unit of risk. BTC Health Limited is currently generating about -0.15 per unit of risk. If you would invest 130.00 in Dug Technology on November 7, 2024 and sell it today you would earn a total of 5.00 from holding Dug Technology or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. BTC Health Limited
Performance |
| Timeline |
| Dug Technology |
| BTC Health Limited |
Dug Technology and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and BTC Health
The main advantage of trading using opposite Dug Technology and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, BTC Health 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 BTC Health will offset losses from the drop in BTC Health's long position.| Dug Technology vs. Advanced Braking Technology | Dug Technology vs. Thorney Technologies | Dug Technology vs. Macquarie Technology Group | Dug Technology vs. M3 Mining |
| BTC Health vs. Aussie Broadband | BTC Health vs. Auswide Bank | BTC Health vs. Step One Clothing | BTC Health vs. Change Financial Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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