Correlation Between Grand Havana and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Grand Havana and Bit Origin 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 Grand Havana and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Havana and Bit Origin, you can compare the effects of market volatilities on Grand Havana and Bit Origin 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 Grand Havana with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Havana and Bit Origin.
Diversification Opportunities for Grand Havana and Bit Origin
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and Bit is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Grand Havana and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Grand Havana 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 Grand Havana are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Grand Havana i.e., Grand Havana and Bit Origin go up and down completely randomly.
Pair Corralation between Grand Havana and Bit Origin
Given the investment horizon of 90 days Grand Havana is expected to generate 1.27 times more return on investment than Bit Origin. However, Grand Havana is 1.27 times more volatile than Bit Origin. It trades about -0.01 of its potential returns per unit of risk. Bit Origin is currently generating about -0.04 per unit of risk. If you would invest 0.20 in Grand Havana on August 27, 2024 and sell it today you would lose (0.14) from holding Grand Havana or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Havana vs. Bit Origin
Performance |
| Timeline |
| Grand Havana |
| Bit Origin |
Grand Havana and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Havana and Bit Origin
The main advantage of trading using opposite Grand Havana and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Havana position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.| Grand Havana vs. Artisan Consumer Goods | Grand Havana vs. The A2 Milk | Grand Havana vs. BioAdaptives | Grand Havana vs. General Mills |
| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Stryve Foods |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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