Correlation Between 8x8 Common and Bitdeer Technologies
Can any of the company-specific risk be diversified away by investing in both 8x8 Common and Bitdeer Technologies 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 8x8 Common and Bitdeer Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 8x8 Common Stock and Bitdeer Technologies Group, you can compare the effects of market volatilities on 8x8 Common and Bitdeer Technologies 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 8x8 Common with a short position of Bitdeer Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 8x8 Common and Bitdeer Technologies.
Diversification Opportunities for 8x8 Common and Bitdeer Technologies
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 8x8 and Bitdeer is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 8x8 Common Stock and Bitdeer Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitdeer Technologies and 8x8 Common 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 8x8 Common Stock are associated (or correlated) with Bitdeer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitdeer Technologies has no effect on the direction of 8x8 Common i.e., 8x8 Common and Bitdeer Technologies go up and down completely randomly.
Pair Corralation between 8x8 Common and Bitdeer Technologies
Given the investment horizon of 90 days 8x8 Common is expected to generate 1.78 times less return on investment than Bitdeer Technologies. But when comparing it to its historical volatility, 8x8 Common Stock is 1.77 times less risky than Bitdeer Technologies. It trades about 0.25 of its potential returns per unit of risk. Bitdeer Technologies Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 695.00 in Bitdeer Technologies Group on September 3, 2024 and sell it today you would earn a total of 732.00 from holding Bitdeer Technologies Group or generate 105.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
8x8 Common Stock vs. Bitdeer Technologies Group
Performance |
| Timeline |
| 8x8 Common Stock |
| Bitdeer Technologies |
8x8 Common and Bitdeer Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 8x8 Common and Bitdeer Technologies
The main advantage of trading using opposite 8x8 Common and Bitdeer Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 8x8 Common position performs unexpectedly, Bitdeer Technologies 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 Bitdeer Technologies will offset losses from the drop in Bitdeer Technologies' long position.| 8x8 Common vs. Workday | 8x8 Common vs. Digital Turbine | 8x8 Common vs. Bill Com Holdings | 8x8 Common vs. Autodesk |
| Bitdeer Technologies vs. Addus HomeCare | Bitdeer Technologies vs. Boot Barn Holdings | Bitdeer Technologies vs. Skechers USA | Bitdeer Technologies vs. Ross Stores |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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