Correlation Between Bitfarms and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Bitfarms 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 Bitfarms and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and Bitfarms, you can compare the effects of market volatilities on Bitfarms 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 Bitfarms with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Bitfarms.
Diversification Opportunities for Bitfarms and Bitfarms
No risk reduction
The 3 months correlation between Bitfarms and Bitfarms is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Bitfarms 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 Bitfarms 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 Bitfarms i.e., Bitfarms and Bitfarms go up and down completely randomly.
Pair Corralation between Bitfarms and Bitfarms
Assuming the 90 days trading horizon Bitfarms is expected to under-perform the Bitfarms. But the stock apears to be less risky and, when comparing its historical volatility, Bitfarms is 1.02 times less risky than Bitfarms. The stock trades about -0.1 of its potential returns per unit of risk. The Bitfarms is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Bitfarms on January 19, 2025 and sell it today you would lose (20.00) from holding Bitfarms or give up 19.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. Bitfarms
Performance |
| Timeline |
| Bitfarms |
| Bitfarms |
Bitfarms and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and Bitfarms
The main advantage of trading using opposite Bitfarms and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms 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.| Bitfarms vs. Hut 8 Mining | Bitfarms vs. Bitfarms | Bitfarms vs. Dmg Blockchain Solutions | Bitfarms vs. Galaxy Digital Holdings |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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