Correlation Between Accelerate Canadian and Hut 8

Can any of the company-specific risk be diversified away by investing in both Accelerate Canadian and Hut 8 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 Accelerate Canadian and Hut 8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accelerate Canadian Long and Hut 8 Mining, you can compare the effects of market volatilities on Accelerate Canadian and Hut 8 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 Accelerate Canadian with a short position of Hut 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Canadian and Hut 8.

Diversification Opportunities for Accelerate Canadian and Hut 8

0.0

Correlation Coefficient

Accelerate Canadian  Hut 8

Pay attention - limited upside

The 3 months correlation between Accelerate and Hut is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Canadian Long and Hut 8 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hut 8 Mining and Accelerate Canadian 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 Accelerate Canadian Long are associated (or correlated) with Hut 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hut 8 Mining has no effect on the direction of Accelerate Canadian i.e., Accelerate Canadian and Hut 8 go up and down completely randomly.

Pair Corralation between Accelerate Canadian and Hut 8

If you would invest  1,060  in Hut 8 Mining on October 4, 2024 and sell it today you would earn a total of  2,096  from holding Hut 8 Mining or generate 197.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

Accelerate Canadian Long  vs.  Hut 8 Mining

Accelerate Canadian Long

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Accelerate Canadian Long has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Accelerate Canadian is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Hut 8 Mining

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hut 8 Mining are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Hut 8 displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accelerate Canadian and Hut 8

The main advantage of trading using opposite Accelerate Canadian and Hut 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Canadian position performs unexpectedly, Hut 8 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 Hut 8 will offset losses from the drop in Hut 8's long position.

The idea behind Accelerate Canadian Long and Hut 8 Mining 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.