Correlation Between BitFrontier Capital and Terawulf
Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital and Terawulf 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 Terawulf 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 Terawulf, you can compare the effects of market volatilities on BitFrontier Capital and Terawulf 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 Terawulf. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and Terawulf.
Diversification Opportunities for BitFrontier Capital and Terawulf
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BitFrontier and Terawulf is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and Terawulf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terawulf 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 Terawulf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terawulf has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and Terawulf go up and down completely randomly.
Pair Corralation between BitFrontier Capital and Terawulf
Given the investment horizon of 90 days BitFrontier Capital is expected to generate 1.78 times less return on investment than Terawulf. In addition to that, BitFrontier Capital is 1.53 times more volatile than Terawulf. It trades about 0.03 of its total potential returns per unit of risk. Terawulf is currently generating about 0.09 per unit of volatility. If you would invest 121.00 in Terawulf on August 30, 2024 and sell it today you would earn a total of 608.00 from holding Terawulf or generate 502.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
BitFrontier Capital Holdings vs. Terawulf
Performance |
| Timeline |
| BitFrontier Capital |
| Terawulf |
BitFrontier Capital and Terawulf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFrontier Capital and Terawulf
The main advantage of trading using opposite BitFrontier Capital and Terawulf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital position performs unexpectedly, Terawulf 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 Terawulf will offset losses from the drop in Terawulf'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 |
| Terawulf vs. Iris Energy | Terawulf vs. Stronghold Digital Mining | Terawulf vs. Argo Blockchain PLC | Terawulf 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |