Correlation Between NuVim and Bit Origin
Can any of the company-specific risk be diversified away by investing in both NuVim 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 NuVim and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuVim Inc and Bit Origin, you can compare the effects of market volatilities on NuVim 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 NuVim with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuVim and Bit Origin.
Diversification Opportunities for NuVim and Bit Origin
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NuVim and Bit is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding NuVim Inc and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and NuVim 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 NuVim Inc 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 NuVim i.e., NuVim and Bit Origin go up and down completely randomly.
Pair Corralation between NuVim and Bit Origin
Given the investment horizon of 90 days NuVim Inc is expected to generate 1.3 times more return on investment than Bit Origin. However, NuVim is 1.3 times more volatile than Bit Origin. It trades about 0.02 of its potential returns per unit of risk. Bit Origin is currently generating about -0.06 per unit of risk. If you would invest 0.60 in NuVim Inc on September 2, 2024 and sell it today you would lose (0.20) from holding NuVim Inc or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
NuVim Inc vs. Bit Origin
Performance |
| Timeline |
| NuVim Inc |
| Bit Origin |
NuVim and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuVim and Bit Origin
The main advantage of trading using opposite NuVim and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuVim 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.The idea behind NuVim Inc and Bit Origin 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.| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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