Correlation Between HIVE Blockchain and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100, you can compare the effects of market volatilities on HIVE Blockchain and Nasdaq 100 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 Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Nasdaq 100.
Diversification Opportunities for HIVE Blockchain and Nasdaq 100
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HIVE and Nasdaq is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 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 Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Nasdaq 100 go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Nasdaq 100
Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to generate 5.4 times more return on investment than Nasdaq 100. However, HIVE Blockchain is 5.4 times more volatile than Nasdaq 100. It trades about 0.04 of its potential returns per unit of risk. Nasdaq 100 is currently generating about 0.11 per unit of risk. If you would invest 331.00 in HIVE Blockchain Technologies on September 1, 2024 and sell it today you would earn a total of 77.00 from holding HIVE Blockchain Technologies or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.42% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Nasdaq 100
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Nasdaq 100 |
HIVE Blockchain and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Nasdaq 100
The main advantage of trading using opposite HIVE Blockchain and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
| Nasdaq 100 vs. Brent Crude Oil | Nasdaq 100 vs. Natural Gas | Nasdaq 100 vs. Five Year Treasury Note | Nasdaq 100 vs. Micro Gold Futures |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |