Correlation Between Allied Motion and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Allied Motion and Bitmine Immersion 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 Allied Motion and Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allied Motion Technologies and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Allied Motion and Bitmine Immersion 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 Allied Motion with a short position of Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Motion and Bitmine Immersion.
Diversification Opportunities for Allied Motion and Bitmine Immersion
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allied and Bitmine is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Allied Motion Technologies and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Allied Motion 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 Allied Motion Technologies are associated (or correlated) with Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Allied Motion i.e., Allied Motion and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Allied Motion and Bitmine Immersion
Given the investment horizon of 90 days Allied Motion Technologies is expected to under-perform the Bitmine Immersion. But the stock apears to be less risky and, when comparing its historical volatility, Allied Motion Technologies is 6.86 times less risky than Bitmine Immersion. The stock trades about 0.0 of its potential returns per unit of risk. The Bitmine Immersion Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Bitmine Immersion Technologies on November 4, 2024 and sell it today you would lose (30.00) from holding Bitmine Immersion Technologies or give up 46.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.58% |
| Values | Daily Returns |
Allied Motion Technologies vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Allied Motion Techno |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bitmine Immersion |
Allied Motion and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Motion and Bitmine Immersion
The main advantage of trading using opposite Allied Motion and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Motion position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.| Allied Motion vs. Plexus Corp | Allied Motion vs. Sanmina | Allied Motion vs. Bel Fuse A | Allied Motion vs. Methode Electronics |
| Bitmine Immersion vs. Cytta Corp | Bitmine Immersion vs. Mawson Infrastructure Group | Bitmine Immersion vs. World Technology Corp | Bitmine Immersion vs. Bagger Daves Burger |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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