Correlation Between Greenidge Generation and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both Greenidge Generation 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 Greenidge Generation and HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenidge Generation Holdings and HIVE Blockchain Technologies, you can compare the effects of market volatilities on Greenidge Generation 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 Greenidge Generation with a short position of HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenidge Generation and HIVE Blockchain.
Diversification Opportunities for Greenidge Generation and HIVE Blockchain
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Greenidge and HIVE is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Greenidge Generation Holdings 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 Greenidge Generation 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 Greenidge Generation Holdings 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 Greenidge Generation i.e., Greenidge Generation and HIVE Blockchain go up and down completely randomly.
Pair Corralation between Greenidge Generation and HIVE Blockchain
Given the investment horizon of 90 days Greenidge Generation Holdings is expected to under-perform the HIVE Blockchain. In addition to that, Greenidge Generation is 1.19 times more volatile than HIVE Blockchain Technologies. It trades about -0.01 of its total potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.05 per unit of volatility. If you would invest 317.00 in HIVE Blockchain Technologies on August 28, 2024 and sell it today you would earn a total of 76.00 from holding HIVE Blockchain Technologies or generate 23.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenidge Generation Holdings vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| Greenidge Generation |
| HIVE Blockchain Tech |
Greenidge Generation and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenidge Generation and HIVE Blockchain
The main advantage of trading using opposite Greenidge Generation and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenidge Generation 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.| Greenidge Generation vs. PowerUp Acquisition Corp | Greenidge Generation vs. Aurora Innovation | Greenidge Generation vs. HUMANA INC | Greenidge Generation vs. Aquagold International |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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