Correlation Between HIVE Blockchain and Visa
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Visa 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 Visa 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 Visa Class A, you can compare the effects of market volatilities on HIVE Blockchain and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Visa.
Diversification Opportunities for HIVE Blockchain and Visa
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HIVE and Visa is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Visa Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Class A 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Class A has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Visa go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Visa
Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to under-perform the Visa. In addition to that, HIVE Blockchain is 4.06 times more volatile than Visa Class A. It trades about -0.5 of its total potential returns per unit of risk. Visa Class A is currently generating about -0.11 per unit of volatility. If you would invest 35,064 in Visa Class A on December 11, 2024 and sell it today you would lose (916.00) from holding Visa Class A or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Visa Class A
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Visa Class A |
HIVE Blockchain and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Visa
The main advantage of trading using opposite HIVE Blockchain and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |