Correlation Between Applied Blockchain and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain 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 Applied Blockchain and Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Applied Blockchain 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 Applied Blockchain with a short position of Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Bitmine Immersion.
Diversification Opportunities for Applied Blockchain and Bitmine Immersion
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and Bitmine is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Applied Blockchain 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 Applied Blockchain 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 Applied Blockchain i.e., Applied Blockchain and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Applied Blockchain and Bitmine Immersion
Given the investment horizon of 90 days Applied Blockchain is expected to generate 2.75 times less return on investment than Bitmine Immersion. But when comparing it to its historical volatility, Applied Blockchain is 2.77 times less risky than Bitmine Immersion. It trades about 0.19 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Bitmine Immersion Technologies on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Bitmine Immersion Technologies or generate 57.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Applied Blockchain |
| Bitmine Immersion |
Applied Blockchain and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Bitmine Immersion
The main advantage of trading using opposite Applied Blockchain and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain 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.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| Bitmine Immersion vs. LGL Group | Bitmine Immersion vs. Data IO | Bitmine Immersion vs. Sanmina | Bitmine Immersion vs. Plexus Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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