Correlation Between Hivemapper and KMD
Can any of the company-specific risk be diversified away by investing in both Hivemapper and KMD 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 KMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hivemapper and KMD, you can compare the effects of market volatilities on Hivemapper and KMD 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 KMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hivemapper and KMD.
Diversification Opportunities for Hivemapper and KMD
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hivemapper and KMD is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and KMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMD 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 KMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMD has no effect on the direction of Hivemapper i.e., Hivemapper and KMD go up and down completely randomly.
Pair Corralation between Hivemapper and KMD
Assuming the 90 days trading horizon Hivemapper is expected to generate 1.01 times more return on investment than KMD. However, Hivemapper is 1.01 times more volatile than KMD. It trades about -0.36 of its potential returns per unit of risk. KMD is currently generating about -0.38 per unit of risk. If you would invest 7.58 in Hivemapper on November 8, 2024 and sell it today you would lose (2.94) from holding Hivemapper or give up 38.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hivemapper vs. KMD
Performance |
| Timeline |
| Hivemapper |
| KMD |
Hivemapper and KMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hivemapper and KMD
The main advantage of trading using opposite Hivemapper and KMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hivemapper position performs unexpectedly, KMD 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 KMD will offset losses from the drop in KMD'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |