Correlation Between HIVE Blockchain and Bit Digital
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Bit Digital 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 Bit Digital 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 Bit Digital, you can compare the effects of market volatilities on HIVE Blockchain and Bit Digital 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 Bit Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Bit Digital.
Diversification Opportunities for HIVE Blockchain and Bit Digital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HIVE and Bit is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Bit Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Digital 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 Bit Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Digital has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Bit Digital go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Bit Digital
Given the investment horizon of 90 days HIVE Blockchain is expected to generate 20.7 times less return on investment than Bit Digital. But when comparing it to its historical volatility, HIVE Blockchain Technologies is 1.36 times less risky than Bit Digital. It trades about 0.0 of its potential returns per unit of risk. Bit Digital is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 431.00 in Bit Digital on August 28, 2024 and sell it today you would lose (6.00) from holding Bit Digital or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Bit Digital
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Bit Digital |
HIVE Blockchain and Bit Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Bit Digital
The main advantage of trading using opposite HIVE Blockchain and Bit Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Bit Digital 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 Bit Digital will offset losses from the drop in Bit Digital's long position.| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
| Bit Digital vs. Hut 8 Corp | Bit Digital vs. HIVE Blockchain Technologies | Bit Digital vs. CleanSpark | Bit Digital vs. Terawulf |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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