Correlation Between Planet Green and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Planet Green 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 Planet Green and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Green Holdings and Bit Origin, you can compare the effects of market volatilities on Planet Green 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 Planet Green with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Green and Bit Origin.
Diversification Opportunities for Planet Green and Bit Origin
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Planet and Bit is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Planet Green Holdings and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Planet Green 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 Planet Green Holdings 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 Planet Green i.e., Planet Green and Bit Origin go up and down completely randomly.
Pair Corralation between Planet Green and Bit Origin
Given the investment horizon of 90 days Planet Green Holdings is expected to generate 0.55 times more return on investment than Bit Origin. However, Planet Green Holdings is 1.82 times less risky than Bit Origin. It trades about 0.07 of its potential returns per unit of risk. Bit Origin is currently generating about -0.14 per unit of risk. If you would invest 227.00 in Planet Green Holdings on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Planet Green Holdings or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Green Holdings vs. Bit Origin
Performance |
| Timeline |
| Planet Green Holdings |
| Bit Origin |
Planet Green and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Green and Bit Origin
The main advantage of trading using opposite Planet Green and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Green 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 Planet Green Holdings 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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