Correlation Between High Liner and Bit Origin
Can any of the company-specific risk be diversified away by investing in both High Liner and Bit Origin 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 High Liner and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Liner Foods and Bit Origin, you can compare the effects of market volatilities on High Liner and Bit Origin 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 High Liner with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Bit Origin.
Diversification Opportunities for High Liner and Bit Origin
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between High and Bit is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and High Liner 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 High Liner Foods are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of High Liner i.e., High Liner and Bit Origin go up and down completely randomly.
Pair Corralation between High Liner and Bit Origin
Assuming the 90 days horizon High Liner is expected to generate 19.31 times less return on investment than Bit Origin. But when comparing it to its historical volatility, High Liner Foods is 3.89 times less risky than Bit Origin. It trades about 0.01 of its potential returns per unit of risk. Bit Origin is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Bit Origin on August 27, 2024 and sell it today you would lose (38.00) from holding Bit Origin or give up 21.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 62.73% |
| Values | Daily Returns |
High Liner Foods vs. Bit Origin
Performance |
| Timeline |
| High Liner Foods |
| Bit Origin |
High Liner and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Bit Origin
The main advantage of trading using opposite High Liner and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Bit Origin 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 Origin will offset losses from the drop in Bit Origin's long position.| High Liner vs. Grupo Bimbo SAB | High Liner vs. Lamb Weston Holdings | High Liner vs. Kellanova | High Liner vs. Premier Foods Plc |
| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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