Correlation Between HIVE Blockchain and Magna Terra
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Magna Terra 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 Magna Terra 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 Magna Terra Minerals, you can compare the effects of market volatilities on HIVE Blockchain and Magna Terra 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 Magna Terra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Magna Terra.
Diversification Opportunities for HIVE Blockchain and Magna Terra
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HIVE and Magna is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Magna Terra Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Terra Minerals 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 Magna Terra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Terra Minerals has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Magna Terra go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Magna Terra
Assuming the 90 days trading horizon HIVE Blockchain Technologies is expected to under-perform the Magna Terra. But the stock apears to be less risky and, when comparing its historical volatility, HIVE Blockchain Technologies is 1.81 times less risky than Magna Terra. The stock trades about -0.31 of its potential returns per unit of risk. The Magna Terra Minerals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Magna Terra Minerals on December 24, 2024 and sell it today you would earn a total of 0.00 from holding Magna Terra Minerals or generate 0.0% 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. Magna Terra Minerals
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Magna Terra Minerals |
HIVE Blockchain and Magna Terra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Magna Terra
The main advantage of trading using opposite HIVE Blockchain and Magna Terra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Magna Terra 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 Magna Terra will offset losses from the drop in Magna Terra'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 |
| Magna Terra vs. Wildsky Resources | Magna Terra vs. Golden Pursuit Resources | Magna Terra vs. ExGen Resources | Magna Terra vs. Fidelity Minerals Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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