Correlation Between Wipro Limited and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Wipro Limited and BIT Mining 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 Wipro Limited and BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wipro Limited ADR and BIT Mining, you can compare the effects of market volatilities on Wipro Limited and BIT Mining 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 Wipro Limited with a short position of BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wipro Limited and BIT Mining.
Diversification Opportunities for Wipro Limited and BIT Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wipro and BIT is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Wipro Limited ADR and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and Wipro Limited 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 Wipro Limited ADR are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Wipro Limited i.e., Wipro Limited and BIT Mining go up and down completely randomly.
Pair Corralation between Wipro Limited and BIT Mining
Considering the 90-day investment horizon Wipro Limited ADR is expected to generate 0.39 times more return on investment than BIT Mining. However, Wipro Limited ADR is 2.59 times less risky than BIT Mining. It trades about 0.12 of its potential returns per unit of risk. BIT Mining is currently generating about 0.04 per unit of risk. If you would invest 527.00 in Wipro Limited ADR on August 30, 2024 and sell it today you would earn a total of 176.00 from holding Wipro Limited ADR or generate 33.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wipro Limited ADR vs. BIT Mining
Performance |
| Timeline |
| Wipro Limited ADR |
| BIT Mining |
Wipro Limited and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wipro Limited and BIT Mining
The main advantage of trading using opposite Wipro Limited and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wipro Limited position performs unexpectedly, BIT Mining 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 Mining will offset losses from the drop in BIT Mining's long position.| Wipro Limited vs. Cognizant Technology Solutions | Wipro Limited vs. Accenture plc | Wipro Limited vs. Gartner | Wipro Limited vs. Infosys Ltd ADR |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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