Correlation Between Bitfarms and Axis Technologies
Can any of the company-specific risk be diversified away by investing in both Bitfarms and Axis Technologies 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 Axis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and Axis Technologies Group, you can compare the effects of market volatilities on Bitfarms and Axis Technologies 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 Axis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Axis Technologies.
Diversification Opportunities for Bitfarms and Axis Technologies
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitfarms and Axis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Axis Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Technologies 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 Axis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Technologies has no effect on the direction of Bitfarms i.e., Bitfarms and Axis Technologies go up and down completely randomly.
Pair Corralation between Bitfarms and Axis Technologies
Given the investment horizon of 90 days Bitfarms is expected to under-perform the Axis Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Bitfarms is 7.39 times less risky than Axis Technologies. The stock trades about -0.25 of its potential returns per unit of risk. The Axis Technologies Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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 | 100.0% |
| Values | Daily Returns |
Bitfarms vs. Axis Technologies Group
Performance |
| Timeline |
| Bitfarms |
| Axis Technologies |
Bitfarms and Axis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and Axis Technologies
The main advantage of trading using opposite Bitfarms and Axis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, Axis Technologies 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 Axis Technologies will offset losses from the drop in Axis Technologies' long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
| Axis Technologies vs. Bullet Blockchain | Axis Technologies vs. The Charles Schwab | Axis Technologies vs. ICOA Inc | Axis Technologies vs. Mercurity Fintech Holding |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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