Correlation Between Axis Technologies and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Axis Technologies and Bitfarms 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 Axis Technologies and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axis Technologies Group and Bitfarms, you can compare the effects of market volatilities on Axis Technologies and Bitfarms 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 Axis Technologies with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axis Technologies and Bitfarms.
Diversification Opportunities for Axis Technologies and Bitfarms
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Axis and Bitfarms is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Axis Technologies Group and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Axis Technologies 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 Axis Technologies Group are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Axis Technologies i.e., Axis Technologies and Bitfarms go up and down completely randomly.
Pair Corralation between Axis Technologies and Bitfarms
Given the investment horizon of 90 days Axis Technologies Group is expected to generate 8.42 times more return on investment than Bitfarms. However, Axis Technologies is 8.42 times more volatile than Bitfarms. It trades about 0.29 of its potential returns per unit of risk. Bitfarms is currently generating about 0.01 per unit of risk. If you would invest 0.04 in Axis Technologies Group on August 30, 2024 and sell it today you would earn a total of 0.10 from holding Axis Technologies Group or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Axis Technologies Group vs. Bitfarms
Performance |
| Timeline |
| Axis Technologies |
| Bitfarms |
Axis Technologies and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axis Technologies and Bitfarms
The main advantage of trading using opposite Axis Technologies and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axis Technologies position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Axis Technologies vs. Bullet Blockchain | Axis Technologies vs. The Charles Schwab | Axis Technologies vs. ICOA Inc | Axis Technologies vs. Mercurity Fintech Holding |
| Bitfarms vs. ClimateRock Class A | Bitfarms vs. Oak Woods Acquisition | Bitfarms vs. CF Acquisition VII | Bitfarms vs. DP Cap Acquisition |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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