Correlation Between HIVE Blockchain and Terawulf
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Terawulf 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 Terawulf 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 Terawulf, you can compare the effects of market volatilities on HIVE Blockchain and Terawulf 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 Terawulf. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Terawulf.
Diversification Opportunities for HIVE Blockchain and Terawulf
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HIVE and Terawulf is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Terawulf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terawulf 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 Terawulf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terawulf has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Terawulf go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Terawulf
Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to generate 0.48 times more return on investment than Terawulf. However, HIVE Blockchain Technologies is 2.07 times less risky than Terawulf. It trades about -0.06 of its potential returns per unit of risk. Terawulf is currently generating about -0.1 per unit of risk. If you would invest 331.00 in HIVE Blockchain Technologies on November 4, 2024 and sell it today you would lose (23.00) from holding HIVE Blockchain Technologies or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Terawulf
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Terawulf |
HIVE Blockchain and Terawulf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Terawulf
The main advantage of trading using opposite HIVE Blockchain and Terawulf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, Terawulf 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 Terawulf will offset losses from the drop in Terawulf's long position.| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. MARA HOLDINGS INC | HIVE Blockchain vs. Riot Blockchain |
| Terawulf vs. Hudson Acquisition I | Terawulf vs. Marblegate Acquisition Corp | Terawulf vs. Alpha One | Terawulf vs. Manaris 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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