Correlation Between Root9B Holdings and Bit Brother

Can any of the company-specific risk be diversified away by investing in both Root9B Holdings and Bit Brother 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 Root9B Holdings and Bit Brother into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between root9B Holdings and Bit Brother Limited, you can compare the effects of market volatilities on Root9B Holdings and Bit Brother 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 Root9B Holdings with a short position of Bit Brother. Check out your portfolio center. Please also check ongoing floating volatility patterns of Root9B Holdings and Bit Brother.

Diversification Opportunities for Root9B Holdings and Bit Brother

0.0

Correlation Coefficient

Root9B Holdings  Bit Brother

Pay attention - limited upside

The 3 months correlation between Root9B and Bit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding root9B Holdings and Bit Brother Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Brother Limited and Root9B Holdings 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 root9B Holdings are associated (or correlated) with Bit Brother. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Brother Limited has no effect on the direction of Root9B Holdings i.e., Root9B Holdings and Bit Brother go up and down completely randomly.

Pair Corralation between Root9B Holdings and Bit Brother

If you would invest  0.08  in Bit Brother Limited on August 1, 2025 and sell it today you would earn a total of  0.02  from holding Bit Brother Limited or generate 25.0% return on investment over 90 days.

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

root9B Holdings  vs.  Bit Brother Limited

root9B Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days root9B Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Root9B Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bit Brother Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bit Brother Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bit Brother reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Root9B Holdings and Bit Brother

The main advantage of trading using opposite Root9B Holdings and Bit Brother positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Root9B Holdings position performs unexpectedly, Bit Brother 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 Brother will offset losses from the drop in Bit Brother's long position.

The idea behind root9B Holdings and Bit Brother Limited 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.