Correlation Between Hivemapper and Altlayer

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

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

Diversification Opportunities for Hivemapper and Altlayer

0.91

Correlation Coefficient

Hivemapper  Altlayer

Almost no diversification

The 3 months correlation between Hivemapper and Altlayer is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hivemapper and Altlayer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altlayer and Hivemapper 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 Hivemapper are associated (or correlated) with Altlayer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altlayer has no effect on the direction of Hivemapper i.e., Hivemapper and Altlayer go up and down completely randomly.

Pair Corralation between Hivemapper and Altlayer

Assuming the 90 days trading horizon Hivemapper is expected to generate 1.09 times more return on investment than Altlayer. However, Hivemapper is 1.09 times more volatile than Altlayer. It trades about -0.02 of its potential returns per unit of risk. Altlayer is currently generating about -0.19 per unit of risk. If you would invest  6.28  in Hivemapper on November 27, 2024 and sell it today you would lose (2.03) from holding Hivemapper or give up 32.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Hivemapper  vs.  Altlayer

Hivemapper

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hivemapper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental 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 Hivemapper shareholders.

Altlayer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altlayer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto'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 Altlayer shareholders.

Pair Trading with Hivemapper and Altlayer

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

The idea behind Hivemapper and Altlayer 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.