Correlation Between Swell Network and Hivemapper
Can any of the company-specific risk be diversified away by investing in both Swell Network and Hivemapper 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 Swell Network and Hivemapper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swell Network and Hivemapper, you can compare the effects of market volatilities on Swell Network and Hivemapper 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 Swell Network with a short position of Hivemapper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swell Network and Hivemapper.
Diversification Opportunities for Swell Network and Hivemapper
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swell and Hivemapper is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Swell Network and Hivemapper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hivemapper and Swell Network 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 Swell Network are associated (or correlated) with Hivemapper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hivemapper has no effect on the direction of Swell Network i.e., Swell Network and Hivemapper go up and down completely randomly.
Pair Corralation between Swell Network and Hivemapper
Assuming the 90 days trading horizon Swell Network is expected to under-perform the Hivemapper. In addition to that, Swell Network is 1.26 times more volatile than Hivemapper. It trades about -0.51 of its total potential returns per unit of risk. Hivemapper is currently generating about -0.36 per unit of volatility. If you would invest 7.58 in Hivemapper on November 8, 2024 and sell it today you would lose (2.94) from holding Hivemapper or give up 38.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swell Network vs. Hivemapper
Performance |
| Timeline |
| Swell Network |
| Hivemapper |
Swell Network and Hivemapper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swell Network and Hivemapper
The main advantage of trading using opposite Swell Network and Hivemapper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swell Network position performs unexpectedly, Hivemapper 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 Hivemapper will offset losses from the drop in Hivemapper's long position.The idea behind Swell Network and Hivemapper 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.| Hivemapper vs. Staked Ether | Hivemapper vs. Phala Network | Hivemapper vs. EigenLayer | Hivemapper vs. EOSDAC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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