Correlation Between HIVE Blockchain and Payfare
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Payfare 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 Payfare 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 Payfare, you can compare the effects of market volatilities on HIVE Blockchain and Payfare 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 Payfare. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Payfare.
Diversification Opportunities for HIVE Blockchain and Payfare
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HIVE and Payfare is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Payfare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payfare 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 Payfare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payfare has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Payfare go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Payfare
Assuming the 90 days trading horizon HIVE Blockchain is expected to generate 13.94 times less return on investment than Payfare. But when comparing it to its historical volatility, HIVE Blockchain Technologies is 4.42 times less risky than Payfare. It trades about 0.08 of its potential returns per unit of risk. Payfare is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Payfare on October 21, 2024 and sell it today you would earn a total of 179.00 from holding Payfare or generate 84.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Payfare
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Payfare |
HIVE Blockchain and Payfare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Payfare
The main advantage of trading using opposite HIVE Blockchain and Payfare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Payfare 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 Payfare will offset losses from the drop in Payfare'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 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |