Correlation Between Hut 8 and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both Hut 8 and HIVE Blockchain 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 HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hut 8 Corp and HIVE Blockchain Technologies, you can compare the effects of market volatilities on Hut 8 and HIVE Blockchain 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 HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hut 8 and HIVE Blockchain.
Diversification Opportunities for Hut 8 and HIVE Blockchain
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hut and HIVE is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hut 8 Corp and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech 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 Corp are associated (or correlated) with HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of Hut 8 i.e., Hut 8 and HIVE Blockchain go up and down completely randomly.
Pair Corralation between Hut 8 and HIVE Blockchain
Considering the 90-day investment horizon Hut 8 Corp is expected to generate 1.12 times more return on investment than HIVE Blockchain. However, Hut 8 is 1.12 times more volatile than HIVE Blockchain Technologies. It trades about 0.33 of its potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.09 per unit of risk. If you would invest 1,511 in Hut 8 Corp on August 24, 2024 and sell it today you would earn a total of 1,081 from holding Hut 8 Corp or generate 71.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hut 8 Corp vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| Hut 8 Corp |
| HIVE Blockchain Tech |
Hut 8 and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hut 8 and HIVE Blockchain
The main advantage of trading using opposite Hut 8 and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hut 8 position performs unexpectedly, HIVE Blockchain 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 HIVE Blockchain will offset losses from the drop in HIVE Blockchain's long position.The idea behind Hut 8 Corp and HIVE Blockchain Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |