Correlation Between Ocugen and Bit Digital

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

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

Diversification Opportunities for Ocugen and Bit Digital

0.62

Correlation Coefficient

Ocugen  Bit Digital

Poor diversification

The 3 months correlation between Ocugen and Bit is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ocugen Inc and Bit Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Digital and Ocugen 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 Ocugen Inc are associated (or correlated) with Bit Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Digital has no effect on the direction of Ocugen i.e., Ocugen and Bit Digital go up and down completely randomly.

Pair Corralation between Ocugen and Bit Digital

Given the investment horizon of 90 days Ocugen is expected to generate 1.46 times less return on investment than Bit Digital. But when comparing it to its historical volatility, Ocugen Inc is 1.45 times less risky than Bit Digital. It trades about 0.14 of its potential returns per unit of risk. Bit Digital is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  201.00  in Bit Digital on May 6, 2025 and sell it today you would earn a total of  111.00  from holding Bit Digital or generate 55.22% return on investment over 90 days.

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

Ocugen Inc  vs.  Bit Digital

Ocugen Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ocugen Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Ocugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Bit Digital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bit Digital are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Bit Digital unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ocugen and Bit Digital

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

The idea behind Ocugen Inc and Bit Digital 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.