Correlation Between Amphastar and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Amphastar 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 Amphastar and Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Amphastar 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 Amphastar with a short position of Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Bitmine Immersion.
Diversification Opportunities for Amphastar and Bitmine Immersion
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amphastar and Bitmine is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Amphastar 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 Amphastar P 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 Amphastar i.e., Amphastar and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Amphastar and Bitmine Immersion
Given the investment horizon of 90 days Amphastar P is expected to under-perform the Bitmine Immersion. But the stock apears to be less risky and, when comparing its historical volatility, Amphastar P is 9.85 times less risky than Bitmine Immersion. The stock trades about -0.3 of its potential returns per unit of risk. The Bitmine Immersion Technologies is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Bitmine Immersion Technologies on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Bitmine Immersion Technologies or generate 90.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Amphastar P |
| Bitmine Immersion |
Amphastar and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Bitmine Immersion
The main advantage of trading using opposite Amphastar and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar 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.| Amphastar vs. Evoke Pharma | Amphastar vs. Lantheus Holdings | Amphastar vs. ANI Pharmaceuticals | Amphastar vs. Ironwood Pharmaceuticals |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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