Correlation Between Real Good and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Real Good 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 Real Good and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Good Food and Bit Origin, you can compare the effects of market volatilities on Real Good 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 Real Good with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Good and Bit Origin.
Diversification Opportunities for Real Good and Bit Origin
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Real and Bit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Real Good Food and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Real Good 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 Real Good Food 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 Real Good i.e., Real Good and Bit Origin go up and down completely randomly.
Pair Corralation between Real Good and Bit Origin
Considering the 90-day investment horizon Real Good Food is expected to generate 26.89 times more return on investment than Bit Origin. However, Real Good is 26.89 times more volatile than Bit Origin. It trades about 0.13 of its potential returns per unit of risk. Bit Origin is currently generating about -0.32 per unit of risk. If you would invest 377.00 in Real Good Food on November 3, 2024 and sell it today you would lose (363.00) from holding Real Good Food or give up 96.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Real Good Food vs. Bit Origin
Performance |
| Timeline |
| Real Good Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Bit Origin |
Real Good and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Good and Bit Origin
The main advantage of trading using opposite Real Good and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Good 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.| Real Good vs. Seneca Foods Corp | Real Good vs. Central Garden Pet | Real Good vs. Central Garden Pet | Real Good vs. Natures Sunshine Products |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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