Correlation Between Tether and Hive

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

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

Diversification Opportunities for Tether and Hive

0.0

Correlation Coefficient

Tether  Hive

Pay attention - limited upside

The 3 months correlation between Tether and Hive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tether and Hive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hive and Tether 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 Tether are associated (or correlated) with Hive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hive has no effect on the direction of Tether i.e., Tether and Hive go up and down completely randomly.

Pair Corralation between Tether and Hive

If you would invest  34.00  in Hive on January 26, 2024 and sell it today you would lose (1.00) from holding Hive or give up 2.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.22%
Values	Daily Returns

Tether  vs.  Hive

Tether

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tether has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Tether is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Hive

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hive are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Hive exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tether and Hive

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

The idea behind Tether and Hive 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.