Correlation Between Trust Stamp and Bitdeer Technologies

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

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

Diversification Opportunities for Trust Stamp and Bitdeer Technologies

0.46

Correlation Coefficient

Trust Stamp  Bitdeer Technologies

Very weak diversification

The 3 months correlation between Trust and Bitdeer is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp and Bitdeer Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitdeer Technologies and Trust Stamp 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 Trust Stamp 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 Trust Stamp i.e., Trust Stamp and Bitdeer Technologies go up and down completely randomly.

Pair Corralation between Trust Stamp and Bitdeer Technologies

Given the investment horizon of 90 days Trust Stamp is expected to under-perform the Bitdeer Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Trust Stamp is 2.08 times less risky than Bitdeer Technologies. The stock trades about -0.4 of its potential returns per unit of risk. The Bitdeer Technologies Group is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  1,852  in Bitdeer Technologies Group on December 2, 2024 and sell it today you would lose (621.00) from holding Bitdeer Technologies Group or give up 33.53% of portfolio value over 90 days.

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

Trust Stamp  vs.  Bitdeer Technologies Group

Trust Stamp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trust Stamp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Bitdeer Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitdeer Technologies Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Bitdeer Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trust Stamp and Bitdeer Technologies

The main advantage of trading using opposite Trust Stamp and Bitdeer Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp 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 Trust Stamp 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.