Correlation Between Bittensor and OGN

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

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

Diversification Opportunities for Bittensor and OGN

0.82

Correlation Coefficient

Bittensor  OGN

Very poor diversification

The 3 months correlation between Bittensor and OGN is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bittensor and OGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OGN and Bittensor 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 Bittensor are associated (or correlated) with OGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OGN has no effect on the direction of Bittensor i.e., Bittensor and OGN go up and down completely randomly.

Pair Corralation between Bittensor and OGN

Assuming the 90 days trading horizon Bittensor is expected to generate 1.19 times more return on investment than OGN. However, Bittensor is 1.19 times more volatile than OGN. It trades about 0.08 of its potential returns per unit of risk. OGN is currently generating about 0.04 per unit of risk. If you would invest  33,664  in Bittensor on April 22, 2025 and sell it today you would earn a total of  7,726  from holding Bittensor or generate 22.95% return on investment over 90 days.

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

Bittensor  vs.  OGN

Bittensor

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bittensor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bittensor exhibited solid returns over the last few months and may actually be approaching a breakup point.

OGN

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OGN are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, OGN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bittensor and OGN

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

The idea behind Bittensor and OGN 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.