Correlation Between E2open Parent and Bitdeer Technologies
Can any of the company-specific risk be diversified away by investing in both E2open Parent 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 E2open Parent and Bitdeer Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E2open Parent Holdings and Bitdeer Technologies Group, you can compare the effects of market volatilities on E2open Parent 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 E2open Parent with a short position of Bitdeer Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of E2open Parent and Bitdeer Technologies.
Diversification Opportunities for E2open Parent and Bitdeer Technologies
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between E2open and Bitdeer is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding E2open Parent Holdings and Bitdeer Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitdeer Technologies and E2open Parent 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 E2open Parent Holdings 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 E2open Parent i.e., E2open Parent and Bitdeer Technologies go up and down completely randomly.
Pair Corralation between E2open Parent and Bitdeer Technologies
Given the investment horizon of 90 days E2open Parent Holdings is expected to under-perform the Bitdeer Technologies. But the stock apears to be less risky and, when comparing its historical volatility, E2open Parent Holdings is 2.27 times less risky than Bitdeer Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Bitdeer Technologies Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Bitdeer Technologies Group on September 3, 2024 and sell it today you would earn a total of 843.00 from holding Bitdeer Technologies Group or generate 144.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E2open Parent Holdings vs. Bitdeer Technologies Group
Performance |
| Timeline |
| E2open Parent Holdings |
| Bitdeer Technologies |
E2open Parent and Bitdeer Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E2open Parent and Bitdeer Technologies
The main advantage of trading using opposite E2open Parent and Bitdeer Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E2open Parent 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.| E2open Parent vs. Blackbaud | E2open Parent vs. Enfusion | E2open Parent vs. Envestnet | E2open Parent vs. Hitek Global Ordinary |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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