Correlation Between Athena Bitcoin and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Athena Bitcoin and Cipher Mining 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 Athena Bitcoin and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athena Bitcoin Global and Cipher Mining, you can compare the effects of market volatilities on Athena Bitcoin and Cipher Mining 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 Athena Bitcoin with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Bitcoin and Cipher Mining.
Diversification Opportunities for Athena Bitcoin and Cipher Mining
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Athena and Cipher is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Athena Bitcoin Global and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Athena Bitcoin 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 Athena Bitcoin Global are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Athena Bitcoin i.e., Athena Bitcoin and Cipher Mining go up and down completely randomly.
Pair Corralation between Athena Bitcoin and Cipher Mining
Given the investment horizon of 90 days Athena Bitcoin Global is expected to generate 2.03 times more return on investment than Cipher Mining. However, Athena Bitcoin is 2.03 times more volatile than Cipher Mining. It trades about 0.07 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.06 per unit of risk. If you would invest 8.00 in Athena Bitcoin Global on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Athena Bitcoin Global or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athena Bitcoin Global vs. Cipher Mining
Performance |
| Timeline |
| Athena Bitcoin Global |
| Cipher Mining |
Athena Bitcoin and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athena Bitcoin and Cipher Mining
The main advantage of trading using opposite Athena Bitcoin and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Bitcoin position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| Athena Bitcoin vs. Morgan Stanley | Athena Bitcoin vs. Goldman Sachs Group | Athena Bitcoin vs. Charles Schwab Corp | Athena Bitcoin vs. Interactive Brokers Group |
| Cipher Mining vs. Iris Energy | Cipher Mining vs. CleanSpark | Cipher Mining vs. Stronghold Digital Mining | Cipher Mining vs. Bitfarms |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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