Correlation Between Hut 8 and Bce
Can any of the company-specific risk be diversified away by investing in both Hut 8 and Bce 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 Hut 8 and Bce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hut 8 Mining and Bce Inc Pref, you can compare the effects of market volatilities on Hut 8 and Bce 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 Hut 8 with a short position of Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hut 8 and Bce.
Diversification Opportunities for Hut 8 and Bce
Pay attention - limited upside
The 3 months correlation between Hut and Bce is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hut 8 Mining and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref and Hut 8 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 Hut 8 Mining are associated (or correlated) with Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Hut 8 i.e., Hut 8 and Bce go up and down completely randomly.
Pair Corralation between Hut 8 and Bce
Assuming the 90 days trading horizon Hut 8 Mining is expected to generate 8.78 times more return on investment than Bce. However, Hut 8 is 8.78 times more volatile than Bce Inc Pref. It trades about 0.05 of its potential returns per unit of risk. Bce Inc Pref is currently generating about 0.06 per unit of risk. If you would invest 3,427 in Hut 8 Mining on September 27, 2024 and sell it today you would earn a total of 80.00 from holding Hut 8 Mining or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hut 8 Mining vs. Bce Inc Pref
Performance |
| Timeline |
| Hut 8 Mining |
| Bce Inc Pref |
Hut 8 and Bce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hut 8 and Bce
The main advantage of trading using opposite Hut 8 and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hut 8 position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.| Hut 8 vs. HIVE Blockchain Technologies | Hut 8 vs. Dmg Blockchain Solutions | Hut 8 vs. Galaxy Digital Holdings | Hut 8 vs. CryptoStar Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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