Correlation Between HIVE Blockchain and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Stifel Financial 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 Stifel Financial 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 Stifel Financial Corp, you can compare the effects of market volatilities on HIVE Blockchain and Stifel Financial 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 Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Stifel Financial.
Diversification Opportunities for HIVE Blockchain and Stifel Financial
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HIVE and Stifel is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Stifel Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial Corp 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 Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial Corp has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Stifel Financial go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Stifel Financial
Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to generate 7.59 times more return on investment than Stifel Financial. However, HIVE Blockchain is 7.59 times more volatile than Stifel Financial Corp. It trades about 0.13 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.0 per unit of risk. If you would invest 281.00 in HIVE Blockchain Technologies on August 31, 2024 and sell it today you would earn a total of 123.00 from holding HIVE Blockchain Technologies or generate 43.77% 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. Stifel Financial Corp
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Stifel Financial Corp |
HIVE Blockchain and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Stifel Financial
The main advantage of trading using opposite HIVE Blockchain and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's long position.| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
| Stifel Financial vs. Q2 Holdings | Stifel Financial vs. United Airlines Holdings | Stifel Financial vs. Verra Mobility Corp | Stifel Financial vs. Proficient Auto Logistics, |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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