Correlation Between Loews Corp and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Loews Corp and Bit Origin 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 Loews Corp and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loews Corp and Bit Origin, you can compare the effects of market volatilities on Loews Corp and Bit Origin 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 Loews Corp with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loews Corp and Bit Origin.
Diversification Opportunities for Loews Corp and Bit Origin
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loews and Bit is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Loews Corp and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Loews Corp 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 Loews Corp are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Loews Corp i.e., Loews Corp and Bit Origin go up and down completely randomly.
Pair Corralation between Loews Corp and Bit Origin
Taking into account the 90-day investment horizon Loews Corp is expected to generate 0.19 times more return on investment than Bit Origin. However, Loews Corp is 5.16 times less risky than Bit Origin. It trades about 0.09 of its potential returns per unit of risk. Bit Origin is currently generating about -0.31 per unit of risk. If you would invest 8,416 in Loews Corp on November 2, 2024 and sell it today you would earn a total of 186.00 from holding Loews Corp or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loews Corp vs. Bit Origin
Performance |
| Timeline |
| Loews Corp |
| Bit Origin |
Loews Corp and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loews Corp and Bit Origin
The main advantage of trading using opposite Loews Corp and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loews Corp position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.| Loews Corp vs. Horace Mann Educators | Loews Corp vs. Global Indemnity PLC | Loews Corp vs. Selective Insurance Group | Loews Corp vs. Kemper |
| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |