Correlation Between Haitong Securities and Bit Digital
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and Bit Digital 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 Haitong Securities and Bit Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and Bit Digital, you can compare the effects of market volatilities on Haitong Securities and Bit Digital 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 Haitong Securities with a short position of Bit Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and Bit Digital.
Diversification Opportunities for Haitong Securities and Bit Digital
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitong and Bit is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and Bit Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Digital and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with Bit Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Digital has no effect on the direction of Haitong Securities i.e., Haitong Securities and Bit Digital go up and down completely randomly.
Pair Corralation between Haitong Securities and Bit Digital
Assuming the 90 days horizon Haitong Securities Co is expected to generate 1.62 times more return on investment than Bit Digital. However, Haitong Securities is 1.62 times more volatile than Bit Digital. It trades about 0.06 of its potential returns per unit of risk. Bit Digital is currently generating about 0.06 per unit of risk. If you would invest 513.00 in Haitong Securities Co on September 4, 2024 and sell it today you would earn a total of 426.00 from holding Haitong Securities Co or generate 83.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.4% |
| Values | Daily Returns |
Haitong Securities Co vs. Bit Digital
Performance |
| Timeline |
| Haitong Securities |
| Bit Digital |
Haitong Securities and Bit Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and Bit Digital
The main advantage of trading using opposite Haitong Securities and Bit Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, Bit Digital 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 Digital will offset losses from the drop in Bit Digital's long position.| Haitong Securities vs. First Tractor | Haitong Securities vs. Ag Growth International | Haitong Securities vs. AmeraMex International | Haitong Securities vs. Arts Way Manufacturing Co |
| Bit Digital vs. Hut 8 Corp | Bit Digital vs. HIVE Blockchain Technologies | Bit Digital vs. CleanSpark | Bit Digital vs. Terawulf |
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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