Correlation Between HR Block and Bitmis Corp

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

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

Diversification Opportunities for HR Block and Bitmis Corp

-0.65

Correlation Coefficient

HR Block  Bitmis Corp

Excellent diversification

The 3 months correlation between HRB and Bitmis is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HR Block and Bitmis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmis Corp and HR Block 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 HR Block are associated (or correlated) with Bitmis Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmis Corp has no effect on the direction of HR Block i.e., HR Block and Bitmis Corp go up and down completely randomly.

Pair Corralation between HR Block and Bitmis Corp

Considering the 90-day investment horizon HR Block is expected to generate 4.65 times more return on investment than Bitmis Corp. However, HR Block is 4.65 times more volatile than Bitmis Corp. It trades about 0.08 of its potential returns per unit of risk. Bitmis Corp is currently generating about -0.11 per unit of risk. If you would invest  4,879  in HR Block on February 23, 2024 and sell it today you would earn a total of  443.00  from holding HR Block or generate 9.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

HR Block  vs.  Bitmis Corp

HR Block

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HR Block are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, HR Block may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Bitmis Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bitmis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Bitmis Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with HR Block and Bitmis Corp

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

The idea behind HR Block and Bitmis Corp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.