Correlation Between HIVE Blockchain and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Brookfield Infrastructure 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 HIVE Blockchain and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIVE Blockchain Technologies and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on HIVE Blockchain and Brookfield Infrastructure 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 HIVE Blockchain with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Brookfield Infrastructure.
Diversification Opportunities for HIVE Blockchain and Brookfield Infrastructure
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HIVE and Brookfield is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and HIVE Blockchain 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 HIVE Blockchain Technologies are associated (or correlated) with Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Brookfield Infrastructure
Assuming the 90 days trading horizon HIVE Blockchain Technologies is expected to generate 6.64 times more return on investment than Brookfield Infrastructure. However, HIVE Blockchain is 6.64 times more volatile than Brookfield Infrastructure Partners. It trades about 0.05 of its potential returns per unit of risk. Brookfield Infrastructure Partners is currently generating about 0.08 per unit of risk. If you would invest 382.00 in HIVE Blockchain Technologies on November 2, 2024 and sell it today you would earn a total of 62.00 from holding HIVE Blockchain Technologies or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.05% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Brookfield Infrastructure |
HIVE Blockchain and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Brookfield Infrastructure
The main advantage of trading using opposite HIVE Blockchain and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Brookfield Infrastructure 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 Brookfield Infrastructure will offset losses from the drop in Brookfield Infrastructure's long position.| HIVE Blockchain vs. Hut 8 Mining | HIVE Blockchain vs. Dmg Blockchain Solutions | HIVE Blockchain vs. Drone Delivery Canada | HIVE Blockchain vs. CryptoStar Corp |
| Brookfield Infrastructure vs. Black Mammoth Metals | Brookfield Infrastructure vs. T2 Metals Corp | Brookfield Infrastructure vs. Stampede Drilling | Brookfield Infrastructure vs. Pace Metals |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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