Correlation Between Regional Management and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Regional Management 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 Regional Management and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Management Corp and Bit Origin, you can compare the effects of market volatilities on Regional Management 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 Regional Management with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Management and Bit Origin.
Diversification Opportunities for Regional Management and Bit Origin
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regional and Bit is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Regional Management Corp and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Regional Management 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 Regional Management 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 Regional Management i.e., Regional Management and Bit Origin go up and down completely randomly.
Pair Corralation between Regional Management and Bit Origin
Allowing for the 90-day total investment horizon Regional Management Corp is expected to generate 0.37 times more return on investment than Bit Origin. However, Regional Management Corp is 2.69 times less risky than Bit Origin. It trades about 0.2 of its potential returns per unit of risk. Bit Origin is currently generating about -0.26 per unit of risk. If you would invest 2,960 in Regional Management Corp on October 20, 2024 and sell it today you would earn a total of 609.00 from holding Regional Management Corp or generate 20.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Management Corp vs. Bit Origin
Performance |
| Timeline |
| Regional Management Corp |
| Bit Origin |
Regional Management and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Management and Bit Origin
The main advantage of trading using opposite Regional Management and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Management 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.| Regional Management vs. SLM Corp Pb | Regional Management vs. FirstCash | Regional Management vs. Federal Agricultural Mortgage | Regional Management vs. Navient Corp |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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