Correlation Between Altria and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Altria and Bit Origin 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 Altria and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altria Group and Bit Origin, you can compare the effects of market volatilities on Altria and Bit Origin 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 Altria with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altria and Bit Origin.
Diversification Opportunities for Altria and Bit Origin
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altria and Bit is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Altria Group and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Altria 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 Altria Group are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Altria i.e., Altria and Bit Origin go up and down completely randomly.
Pair Corralation between Altria and Bit Origin
Allowing for the 90-day total investment horizon Altria Group is expected to generate 0.1 times more return on investment than Bit Origin. However, Altria Group is 9.55 times less risky than Bit Origin. It trades about 0.19 of its potential returns per unit of risk. Bit Origin is currently generating about -0.01 per unit of risk. If you would invest 4,010 in Altria Group on February 28, 2024 and sell it today you would earn a total of 539.00 from holding Altria Group or generate 13.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Altria Group vs. Bit Origin
Performance |
Timeline |
Altria Group |
Bit Origin |
Altria and Bit Origin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Altria and Bit Origin
The main advantage of trading using opposite Altria and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altria position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. British American Tobacco | Altria vs. Philip Morris International |
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Check out your portfolio center.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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