Correlation Between BitFrontier Capital and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital and Cipher Mining 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 BitFrontier Capital and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFrontier Capital Holdings and Cipher Mining, you can compare the effects of market volatilities on BitFrontier Capital and Cipher Mining 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 BitFrontier Capital with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and Cipher Mining.
Diversification Opportunities for BitFrontier Capital and Cipher Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BitFrontier and Cipher is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and BitFrontier Capital 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 BitFrontier Capital Holdings are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and Cipher Mining go up and down completely randomly.
Pair Corralation between BitFrontier Capital and Cipher Mining
Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to generate 2.09 times more return on investment than Cipher Mining. However, BitFrontier Capital is 2.09 times more volatile than Cipher Mining. It trades about 0.16 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.16 per unit of risk. If you would invest 0.22 in BitFrontier Capital Holdings on August 26, 2024 and sell it today you would earn a total of 0.06 from holding BitFrontier Capital Holdings or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BitFrontier Capital Holdings vs. Cipher Mining
Performance |
| Timeline |
| BitFrontier Capital |
| Cipher Mining |
BitFrontier Capital and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFrontier Capital and Cipher Mining
The main advantage of trading using opposite BitFrontier Capital and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| BitFrontier Capital vs. XTRA Bitcoin | BitFrontier Capital vs. Coin Citadel | BitFrontier Capital vs. Dmg Blockchain Solutions | BitFrontier Capital vs. Argo Blockchain PLC |
| Cipher Mining vs. PowerUp Acquisition Corp | Cipher Mining vs. Aurora Innovation | Cipher Mining vs. HUMANA INC | Cipher Mining vs. Aquagold International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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