Correlation Between HIVE Blockchain and Enbridge
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Enbridge 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 Enbridge 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 Enbridge, you can compare the effects of market volatilities on HIVE Blockchain and Enbridge 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 Enbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Enbridge.
Diversification Opportunities for HIVE Blockchain and Enbridge
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HIVE and Enbridge is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Enbridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge 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 Enbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Enbridge go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Enbridge
Assuming the 90 days trading horizon HIVE Blockchain Technologies is expected to under-perform the Enbridge. In addition to that, HIVE Blockchain is 4.97 times more volatile than Enbridge. It trades about -0.02 of its total potential returns per unit of risk. Enbridge is currently generating about 0.22 per unit of volatility. If you would invest 6,187 in Enbridge on November 2, 2024 and sell it today you would earn a total of 256.00 from holding Enbridge or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Enbridge
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Enbridge |
HIVE Blockchain and Enbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Enbridge
The main advantage of trading using opposite HIVE Blockchain and Enbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Enbridge 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 Enbridge will offset losses from the drop in Enbridge'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 |
| Enbridge vs. Suncor Energy | Enbridge vs. Toronto Dominion Bank | Enbridge vs. Bank of Nova | Enbridge vs. BCE Inc |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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