Correlation Between DigiMax Global and HIVE Blockchain

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

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

Diversification Opportunities for DigiMax Global and HIVE Blockchain

-0.15

Correlation Coefficient

DigiMax Global  HIVE Blockchain

Good diversification

The 3 months correlation between DigiMax and HIVE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global 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 DigiMax Global 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 DigiMax Global 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 DigiMax Global i.e., DigiMax Global and HIVE Blockchain go up and down completely randomly.

Pair Corralation between DigiMax Global and HIVE Blockchain

Assuming the 90 days horizon DigiMax Global is expected to under-perform the HIVE Blockchain. In addition to that, DigiMax Global is 3.13 times more volatile than HIVE Blockchain Technologies. It trades about -0.04 of its total potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.13 per unit of volatility. If you would invest  281.00  in HIVE Blockchain Technologies on September 3, 2024 and sell it today you would earn a total of  127.00  from holding HIVE Blockchain Technologies or generate 45.2% return on investment over 90 days.

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

DigiMax Global  vs.  HIVE Blockchain Technologies

DigiMax Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DigiMax Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

HIVE Blockchain Tech

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HIVE Blockchain Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, HIVE Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DigiMax Global and HIVE Blockchain

The main advantage of trading using opposite DigiMax Global and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global 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 DigiMax Global 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 CEOs Directory module to screen CEOs from public companies around the world.