Correlation Between HeartCore Enterprises and Bitdeer Technologies

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

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

Diversification Opportunities for HeartCore Enterprises and Bitdeer Technologies

0.88

Correlation Coefficient

HeartCore Enterprises  Bitdeer Technologies

Very poor diversification

The 3 months correlation between HeartCore and Bitdeer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding HeartCore Enterprises and Bitdeer Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitdeer Technologies and HeartCore Enterprises 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 HeartCore Enterprises are associated (or correlated) with Bitdeer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitdeer Technologies has no effect on the direction of HeartCore Enterprises i.e., HeartCore Enterprises and Bitdeer Technologies go up and down completely randomly.

Pair Corralation between HeartCore Enterprises and Bitdeer Technologies

Given the investment horizon of 90 days HeartCore Enterprises is expected to generate 1.92 times less return on investment than Bitdeer Technologies. But when comparing it to its historical volatility, HeartCore Enterprises is 1.08 times less risky than Bitdeer Technologies. It trades about 0.26 of its potential returns per unit of risk. Bitdeer Technologies Group is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest  713.00  in Bitdeer Technologies Group on September 5, 2024 and sell it today you would earn a total of  766.00  from holding Bitdeer Technologies Group or generate 107.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

HeartCore Enterprises  vs.  Bitdeer Technologies Group

HeartCore Enterprises

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HeartCore Enterprises are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental indicators, HeartCore Enterprises reported solid returns over the last few months and may actually be approaching a breakup point.

Bitdeer Technologies

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitdeer Technologies Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental indicators, Bitdeer Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HeartCore Enterprises and Bitdeer Technologies

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

The idea behind HeartCore Enterprises and Bitdeer Technologies Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.