Correlation Between Prime Dividend and HIVE Blockchain

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

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

Diversification Opportunities for Prime Dividend and HIVE Blockchain

0.09

Correlation Coefficient

Prime Dividend  HIVE Blockchain

Significant diversification

The 3 months correlation between Prime and HIVE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Prime Dividend Corp and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech and Prime Dividend 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 Prime Dividend Corp are associated (or correlated) with HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of Prime Dividend i.e., Prime Dividend and HIVE Blockchain go up and down completely randomly.

Pair Corralation between Prime Dividend and HIVE Blockchain

Assuming the 90 days trading horizon Prime Dividend Corp is expected to under-perform the HIVE Blockchain. But the stock apears to be less risky and, when comparing its historical volatility, Prime Dividend Corp is 1.8 times less risky than HIVE Blockchain. The stock trades about -0.09 of its potential returns per unit of risk. The HIVE Blockchain Technologies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  435.00  in HIVE Blockchain Technologies on October 22, 2024 and sell it today you would earn a total of  31.00  from holding HIVE Blockchain Technologies or generate 7.13% return on investment over 90 days.

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

Prime Dividend Corp  vs.  HIVE Blockchain Technologies

Prime Dividend Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Prime Dividend Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Prime Dividend may actually be approaching a critical reversion point that can send shares even higher in February 2025.

HIVE Blockchain Tech

Risk-Adjusted Performance

0 of 100

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 fairly stable basic indicators, HIVE Blockchain is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Prime Dividend and HIVE Blockchain

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

The idea behind Prime Dividend Corp and HIVE Blockchain Technologies 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..