Correlation Between Hut 8 and BCULC

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

By analyzing existing cross correlation between Hut 8 Corp and BCULC 35 15 FEB 29, you can compare the effects of market volatilities on Hut 8 and BCULC 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 Hut 8 with a short position of BCULC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hut 8 and BCULC.

Diversification Opportunities for Hut 8 and BCULC

0.84

Correlation Coefficient

Hut 8  BCULC

Very poor diversification

The 3 months correlation between Hut and BCULC is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hut 8 Corp and BCULC 35 15 FEB 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCULC 35 15 and Hut 8 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 Hut 8 Corp are associated (or correlated) with BCULC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCULC 35 15 has no effect on the direction of Hut 8 i.e., Hut 8 and BCULC go up and down completely randomly.

Pair Corralation between Hut 8 and BCULC

Considering the 90-day investment horizon Hut 8 Corp is expected to generate 13.22 times more return on investment than BCULC. However, Hut 8 is 13.22 times more volatile than BCULC 35 15 FEB 29. It trades about 0.14 of its potential returns per unit of risk. BCULC 35 15 FEB 29 is currently generating about -0.09 per unit of risk. If you would invest  1,721  in Hut 8 Corp on September 27, 2024 and sell it today you would earn a total of  696.00  from holding Hut 8 Corp or generate 40.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	37.21%
Values	Daily Returns

Hut 8 Corp  vs.  BCULC 35 15 FEB 29

Hut 8 Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hut 8 Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Hut 8 unveiled solid returns over the last few months and may actually be approaching a breakup point.

BCULC 35 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BCULC 35 15 FEB 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for BCULC 35 15 FEB 29 investors.

Pair Trading with Hut 8 and BCULC

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

The idea behind Hut 8 Corp and BCULC 35 15 FEB 29 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..