Correlation Between HIVE Blockchain and DeFi Technologies
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and DeFi Technologies 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 HIVE Blockchain and DeFi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIVE Blockchain Technologies and DeFi Technologies, you can compare the effects of market volatilities on HIVE Blockchain and DeFi Technologies 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 HIVE Blockchain with a short position of DeFi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and DeFi Technologies.
Diversification Opportunities for HIVE Blockchain and DeFi Technologies
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HIVE and DeFi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and DeFi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DeFi Technologies and HIVE Blockchain 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 HIVE Blockchain Technologies are associated (or correlated) with DeFi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DeFi Technologies has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and DeFi Technologies go up and down completely randomly.
Pair Corralation between HIVE Blockchain and DeFi Technologies
Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to under-perform the DeFi Technologies. But the stock apears to be less risky and, when comparing its historical volatility, HIVE Blockchain Technologies is 1.52 times less risky than DeFi Technologies. The stock trades about -0.24 of its potential returns per unit of risk. The DeFi Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 269.00 in DeFi Technologies on December 1, 2024 and sell it today you would lose (34.00) from holding DeFi Technologies or give up 12.64% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HIVE Blockchain Technologies vs. DeFi Technologies
Performance |
Timeline |
HIVE Blockchain Tech |
DeFi Technologies |
HIVE Blockchain and DeFi Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HIVE Blockchain and DeFi Technologies
The main advantage of trading using opposite HIVE Blockchain and DeFi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain position performs unexpectedly, DeFi Technologies 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 DeFi Technologies will offset losses from the drop in DeFi Technologies' long position.HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
DeFi Technologies vs. Argo Blockchain PLC | DeFi Technologies vs. DigiMax Global | DeFi Technologies vs. Galaxy Digital Holdings | DeFi Technologies vs. BIG Blockchain Intelligence |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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