Correlation Between Hivemapper and Xai
Can any of the company-specific risk be diversified away by investing in both Hivemapper and Xai 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 Xai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hivemapper and Xai, you can compare the effects of market volatilities on Hivemapper and Xai 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 Xai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hivemapper and Xai.
Diversification Opportunities for Hivemapper and Xai
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hivemapper and Xai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and Xai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xai 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 Xai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xai has no effect on the direction of Hivemapper i.e., Hivemapper and Xai go up and down completely randomly.
Pair Corralation between Hivemapper and Xai
Assuming the 90 days trading horizon Hivemapper is expected to generate 0.6 times more return on investment than Xai. However, Hivemapper is 1.66 times less risky than Xai. It trades about -0.36 of its potential returns per unit of risk. Xai is currently generating about -0.32 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hivemapper vs. Xai
Performance |
| Timeline |
| Hivemapper |
| Xai |
Hivemapper and Xai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hivemapper and Xai
The main advantage of trading using opposite Hivemapper and Xai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hivemapper position performs unexpectedly, Xai 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 Xai will offset losses from the drop in Xai'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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |