Correlation Between Bitfarms and BIG Blockchain
Can any of the company-specific risk be diversified away by investing in both Bitfarms and BIG Blockchain 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 BIG Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and BIG Blockchain Intelligence, you can compare the effects of market volatilities on Bitfarms and BIG Blockchain 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 BIG Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and BIG Blockchain.
Diversification Opportunities for Bitfarms and BIG Blockchain
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitfarms and BIG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and BIG Blockchain Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIG Blockchain Intel 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 BIG Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIG Blockchain Intel has no effect on the direction of Bitfarms i.e., Bitfarms and BIG Blockchain go up and down completely randomly.
Pair Corralation between Bitfarms and BIG Blockchain
Given the investment horizon of 90 days Bitfarms is expected to generate 0.97 times more return on investment than BIG Blockchain. However, Bitfarms is 1.03 times less risky than BIG Blockchain. It trades about 0.07 of its potential returns per unit of risk. BIG Blockchain Intelligence is currently generating about 0.02 per unit of risk. If you would invest 54.00 in Bitfarms on August 26, 2024 and sell it today you would earn a total of 157.00 from holding Bitfarms or generate 290.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. BIG Blockchain Intelligence
Performance |
| Timeline |
| Bitfarms |
| BIG Blockchain Intel |
Bitfarms and BIG Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and BIG Blockchain
The main advantage of trading using opposite Bitfarms and BIG Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, BIG Blockchain 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 BIG Blockchain will offset losses from the drop in BIG Blockchain's long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
| BIG Blockchain vs. DeFi Technologies | BIG Blockchain vs. Argo Blockchain PLC | BIG Blockchain vs. DigiMax Global | BIG Blockchain vs. Galaxy Digital Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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