Correlation Between Yield Guild and Hivemapper
Can any of the company-specific risk be diversified away by investing in both Yield Guild 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 Yield Guild and Hivemapper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yield Guild Games and Hivemapper, you can compare the effects of market volatilities on Yield Guild 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 Yield Guild with a short position of Hivemapper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yield Guild and Hivemapper.
Diversification Opportunities for Yield Guild and Hivemapper
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yield and Hivemapper is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Yield Guild Games and Hivemapper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hivemapper and Yield Guild 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 Yield Guild Games 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 Yield Guild i.e., Yield Guild and Hivemapper go up and down completely randomly.
Pair Corralation between Yield Guild and Hivemapper
Assuming the 90 days trading horizon Yield Guild is expected to generate 22.99 times less return on investment than Hivemapper. But when comparing it to its historical volatility, Yield Guild Games is 1.97 times less risky than Hivemapper. It trades about 0.0 of its potential returns per unit of risk. Hivemapper is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.36 in Hivemapper on November 11, 2024 and sell it today you would lose (0.74) from holding Hivemapper or give up 13.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yield Guild Games vs. Hivemapper
Performance |
| Timeline |
| Yield Guild Games |
| Hivemapper |
Yield Guild and Hivemapper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yield Guild and Hivemapper
The main advantage of trading using opposite Yield Guild and Hivemapper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yield Guild 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.| Yield Guild vs. Staked Ether | Yield Guild vs. Phala Network | Yield Guild vs. EigenLayer | Yield Guild vs. EOSDAC |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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