Correlation Between Hivemapper and CMT
Can any of the company-specific risk be diversified away by investing in both Hivemapper and CMT 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 CMT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hivemapper and CMT, you can compare the effects of market volatilities on Hivemapper and CMT 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 CMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hivemapper and CMT.
Diversification Opportunities for Hivemapper and CMT
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hivemapper and CMT is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and CMT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMT 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 CMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMT has no effect on the direction of Hivemapper i.e., Hivemapper and CMT go up and down completely randomly.
Pair Corralation between Hivemapper and CMT
Assuming the 90 days trading horizon Hivemapper is expected to generate 4.02 times more return on investment than CMT. However, Hivemapper is 4.02 times more volatile than CMT. It trades about 0.04 of its potential returns per unit of risk. CMT is currently generating about 0.09 per unit of risk. If you would invest 0.00 in Hivemapper on November 7, 2024 and sell it today you would earn a total of 4.68 from holding Hivemapper or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 58.01% |
| Values | Daily Returns |
Hivemapper vs. CMT
Performance |
| Timeline |
| Hivemapper |
| CMT |
Hivemapper and CMT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hivemapper and CMT
The main advantage of trading using opposite Hivemapper and CMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hivemapper position performs unexpectedly, CMT 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 CMT will offset losses from the drop in CMT's long position.| Hivemapper vs. Staked Ether | Hivemapper vs. Phala Network | Hivemapper vs. EigenLayer | Hivemapper vs. EOSDAC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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