Correlation Between Hedera Hashgraph and BIX
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and BIX 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 Hedera Hashgraph and BIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and BIX, you can compare the effects of market volatilities on Hedera Hashgraph and BIX 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 Hedera Hashgraph with a short position of BIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and BIX.
Diversification Opportunities for Hedera Hashgraph and BIX
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hedera and BIX is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and BIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIX and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with BIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIX has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and BIX go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and BIX
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 3.05 times more return on investment than BIX. However, Hedera Hashgraph is 3.05 times more volatile than BIX. It trades about 0.49 of its potential returns per unit of risk. BIX is currently generating about 0.36 per unit of risk. If you would invest 4.97 in Hedera Hashgraph on August 27, 2024 and sell it today you would earn a total of 10.03 from holding Hedera Hashgraph or generate 201.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedera Hashgraph vs. BIX
Performance |
| Timeline |
| Hedera Hashgraph |
| BIX |
Hedera Hashgraph and BIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and BIX
The main advantage of trading using opposite Hedera Hashgraph and BIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, BIX 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 BIX will offset losses from the drop in BIX's long position.| Hedera Hashgraph vs. Staked Ether | Hedera Hashgraph vs. EigenLayer | Hedera Hashgraph vs. EOSDAC | Hedera Hashgraph vs. BLZ |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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