Correlation Between MusclePharm and Bit Origin
Can any of the company-specific risk be diversified away by investing in both MusclePharm 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 MusclePharm and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MusclePharm and Bit Origin, you can compare the effects of market volatilities on MusclePharm 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 MusclePharm with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of MusclePharm and Bit Origin.
Diversification Opportunities for MusclePharm and Bit Origin
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MusclePharm and Bit is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MusclePharm and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and MusclePharm 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 MusclePharm 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 MusclePharm i.e., MusclePharm and Bit Origin go up and down completely randomly.
Pair Corralation between MusclePharm and Bit Origin
If you would invest (100.00) in MusclePharm on August 28, 2024 and sell it today you would earn a total of 100.00 from holding MusclePharm or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MusclePharm vs. Bit Origin
Performance |
| Timeline |
| MusclePharm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bit Origin |
MusclePharm and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MusclePharm and Bit Origin
The main advantage of trading using opposite MusclePharm and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MusclePharm 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.| MusclePharm vs. Jacobs Solutions | MusclePharm vs. Fidus Investment Corp | MusclePharm vs. Black Hills | MusclePharm vs. Everus Construction Group |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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