Correlation Between Bit Origin and Kellanova

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

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

Diversification Opportunities for Bit Origin and Kellanova

-0.37

Correlation Coefficient

Bit Origin  Kellanova

Very good diversification

The 3 months correlation between Bit and Kellanova is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bit Origin and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Bit Origin 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 Bit Origin are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Bit Origin i.e., Bit Origin and Kellanova go up and down completely randomly.

Pair Corralation between Bit Origin and Kellanova

Given the investment horizon of 90 days Bit Origin is expected to generate 8.41 times more return on investment than Kellanova. However, Bit Origin is 8.41 times more volatile than Kellanova. It trades about 0.03 of its potential returns per unit of risk. Kellanova is currently generating about -0.01 per unit of risk. If you would invest  750.00  in Bit Origin on February 5, 2024 and sell it today you would lose (338.00) from holding Bit Origin or give up 45.07% of portfolio value over 90 days.

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

Bit Origin  vs.  Kellanova

Bit Origin

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bit Origin are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Bit Origin may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Kellanova

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kellanova are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Kellanova may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Bit Origin and Kellanova

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

The idea behind Bit Origin and Kellanova 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.