Correlation Between Hivemapper and BITM

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Can any of the company-specific risk be diversified away by investing in both Hivemapper and BITM 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 Hivemapper and BITM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hivemapper and BITM, you can compare the effects of market volatilities on Hivemapper and BITM 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 Hivemapper with a short position of BITM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hivemapper and BITM.

Diversification Opportunities for Hivemapper and BITM

HivemapperBITMDiversified AwayHivemapperBITMDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hivemapper and BITM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and BITM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BITM and Hivemapper 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 Hivemapper are associated (or correlated) with BITM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BITM has no effect on the direction of Hivemapper i.e., Hivemapper and BITM go up and down completely randomly.

Pair Corralation between Hivemapper and BITM

If you would invest (100.00) in BITM on November 23, 2024 and sell it today you would earn a total of  100.00  from holding BITM or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Hivemapper  vs.  BITM

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -40-200204060
JavaScript chart by amCharts 3.21.15HONEY BITM
       Timeline  
Hivemapper 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Hivemapper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Hivemapper shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.040.060.080.10.120.14
BITM 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BITM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, BITM is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Hivemapper and BITM Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.72-11.02-7.33-3.630.03.617.2210.8314.44 0.0010.0020.0030.004
JavaScript chart by amCharts 3.21.15HONEY BITM
       Returns  

Pair Trading with Hivemapper and BITM

The main advantage of trading using opposite Hivemapper and BITM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hivemapper position performs unexpectedly, BITM 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 BITM will offset losses from the drop in BITM's long position.
The idea behind Hivemapper and BITM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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