Correlation Between Axis Technologies and Marathon Digital
Can any of the company-specific risk be diversified away by investing in both Axis Technologies and Marathon Digital 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 Marathon Digital 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 Marathon Digital Holdings, you can compare the effects of market volatilities on Axis Technologies and Marathon Digital 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 Marathon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axis Technologies and Marathon Digital.
Diversification Opportunities for Axis Technologies and Marathon Digital
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Axis and Marathon is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Axis Technologies Group and Marathon Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Digital Holdings 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 Marathon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Digital Holdings has no effect on the direction of Axis Technologies i.e., Axis Technologies and Marathon Digital go up and down completely randomly.
Pair Corralation between Axis Technologies and Marathon Digital
Given the investment horizon of 90 days Axis Technologies Group is expected to generate 8.78 times more return on investment than Marathon Digital. However, Axis Technologies is 8.78 times more volatile than Marathon Digital Holdings. It trades about 0.17 of its potential returns per unit of risk. Marathon Digital Holdings is currently generating about -0.01 per unit of risk. If you would invest 0.04 in Axis Technologies Group on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Axis Technologies Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
Axis Technologies Group vs. Marathon Digital Holdings
Performance |
| Timeline |
| Axis Technologies |
| Marathon Digital Holdings |
Axis Technologies and Marathon Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axis Technologies and Marathon Digital
The main advantage of trading using opposite Axis Technologies and Marathon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axis Technologies position performs unexpectedly, Marathon Digital 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 Marathon Digital will offset losses from the drop in Marathon Digital's long position.| Axis Technologies vs. Bullet Blockchain | Axis Technologies vs. The Charles Schwab | Axis Technologies vs. ICOA Inc | Axis Technologies vs. Mercurity Fintech Holding |
| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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