Correlation Between Blockchain Technologies and Harvest Global
Can any of the company-specific risk be diversified away by investing in both Blockchain Technologies and Harvest Global 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 Blockchain Technologies and Harvest Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Technologies ETF and Harvest Global REIT, you can compare the effects of market volatilities on Blockchain Technologies and Harvest Global 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 Blockchain Technologies with a short position of Harvest Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Technologies and Harvest Global.
Diversification Opportunities for Blockchain Technologies and Harvest Global
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blockchain and Harvest is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and Harvest Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Global REIT and Blockchain Technologies 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 Blockchain Technologies ETF are associated (or correlated) with Harvest Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Global REIT has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and Harvest Global go up and down completely randomly.
Pair Corralation between Blockchain Technologies and Harvest Global
Assuming the 90 days trading horizon Blockchain Technologies ETF is expected to generate 5.75 times more return on investment than Harvest Global. However, Blockchain Technologies is 5.75 times more volatile than Harvest Global REIT. It trades about 0.27 of its potential returns per unit of risk. Harvest Global REIT is currently generating about 0.2 per unit of risk. If you would invest 1,662 in Blockchain Technologies ETF on September 1, 2024 and sell it today you would earn a total of 455.00 from holding Blockchain Technologies ETF or generate 27.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockchain Technologies ETF vs. Harvest Global REIT
Performance |
| Timeline |
| Blockchain Technologies |
| Harvest Global REIT |
Blockchain Technologies and Harvest Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Technologies and Harvest Global
The main advantage of trading using opposite Blockchain Technologies and Harvest Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Technologies position performs unexpectedly, Harvest Global 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 Harvest Global will offset losses from the drop in Harvest Global's long position.| Blockchain Technologies vs. Global X Big | Blockchain Technologies vs. Evolve Automobile Innovation | Blockchain Technologies vs. Evolve E Gaming Index | Blockchain Technologies vs. Evolve Cyber Security |
| Harvest Global vs. Harvest Equal Weight | Harvest Global vs. Harvest Brand Leaders | Harvest Global vs. Energy Leaders Plus | Harvest Global vs. Harvest Tech Achievers |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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