Correlation Between HIVE Blockchain and Dairy Farm

Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain and Dairy Farm 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 Dairy Farm 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 Dairy Farm International, you can compare the effects of market volatilities on HIVE Blockchain and Dairy Farm 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 Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Dairy Farm.

Diversification Opportunities for HIVE Blockchain and Dairy Farm

0.26

Correlation Coefficient

HIVE Blockchain  Dairy Farm

Modest diversification

The 3 months correlation between HIVE and Dairy is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International 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 Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Dairy Farm go up and down completely randomly.

Pair Corralation between HIVE Blockchain and Dairy Farm

If you would invest  215.00  in Dairy Farm International on November 28, 2024 and sell it today you would earn a total of  0.00  from holding Dairy Farm International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

HIVE Blockchain Technologies  vs.  Dairy Farm International

HIVE Blockchain Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days HIVE Blockchain Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Dairy Farm International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dairy Farm International are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Dairy Farm is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with HIVE Blockchain and Dairy Farm

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

The idea behind HIVE Blockchain Technologies and Dairy Farm International 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.