Correlation Between Haitong Securities and Cathedra Bitcoin
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and Cathedra Bitcoin 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 Cathedra Bitcoin 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 Cathedra Bitcoin, you can compare the effects of market volatilities on Haitong Securities and Cathedra Bitcoin 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 Cathedra Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and Cathedra Bitcoin.
Diversification Opportunities for Haitong Securities and Cathedra Bitcoin
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitong and Cathedra is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and Cathedra Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathedra Bitcoin 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 Cathedra Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathedra Bitcoin has no effect on the direction of Haitong Securities i.e., Haitong Securities and Cathedra Bitcoin go up and down completely randomly.
Pair Corralation between Haitong Securities and Cathedra Bitcoin
If you would invest 883.00 in Haitong Securities Co on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Haitong Securities Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Haitong Securities Co vs. Cathedra Bitcoin
Performance |
| Timeline |
| Haitong Securities |
| Cathedra Bitcoin |
Haitong Securities and Cathedra Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and Cathedra Bitcoin
The main advantage of trading using opposite Haitong Securities and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, Cathedra Bitcoin 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 Cathedra Bitcoin will offset losses from the drop in Cathedra Bitcoin's long position.| Haitong Securities vs. CITIC Securities Co | Haitong Securities vs. Up Fintech Holding | Haitong Securities vs. Futu Holdings | Haitong Securities vs. Bit Digital |
| Cathedra Bitcoin vs. Arcane Crypto AB | Cathedra Bitcoin vs. Cypherpunk Holdings | Cathedra Bitcoin vs. CreditRiskMonitorCom | Cathedra Bitcoin vs. SPENN Technology AS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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