Correlation Between Hivemapper and SC
Can any of the company-specific risk be diversified away by investing in both Hivemapper and SC 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 SC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hivemapper and SC, you can compare the effects of market volatilities on Hivemapper and SC 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 SC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hivemapper and SC.
Diversification Opportunities for Hivemapper and SC
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hivemapper and SC is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and SC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC 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 SC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC has no effect on the direction of Hivemapper i.e., Hivemapper and SC go up and down completely randomly.
Pair Corralation between Hivemapper and SC
Assuming the 90 days trading horizon Hivemapper is expected to under-perform the SC. In addition to that, Hivemapper is 1.63 times more volatile than SC. It trades about -0.42 of its total potential returns per unit of risk. SC is currently generating about -0.14 per unit of volatility. If you would invest 0.57 in SC on November 7, 2024 and sell it today you would lose (0.06) from holding SC or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hivemapper vs. SC
Performance |
| Timeline |
| Hivemapper |
| SC |
Hivemapper and SC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hivemapper and SC
The main advantage of trading using opposite Hivemapper and SC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hivemapper position performs unexpectedly, SC 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 SC will offset losses from the drop in SC'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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