Correlation Between Bitfarms and Dmg Blockchain
Can any of the company-specific risk be diversified away by investing in both Bitfarms and Dmg 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 Dmg Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and Dmg Blockchain Solutions, you can compare the effects of market volatilities on Bitfarms and Dmg 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 Dmg Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Dmg Blockchain.
Diversification Opportunities for Bitfarms and Dmg Blockchain
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitfarms and Dmg is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Dmg Blockchain Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dmg Blockchain Solutions 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 Dmg Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dmg Blockchain Solutions has no effect on the direction of Bitfarms i.e., Bitfarms and Dmg Blockchain go up and down completely randomly.
Pair Corralation between Bitfarms and Dmg Blockchain
Given the investment horizon of 90 days Bitfarms is expected to generate 0.92 times more return on investment than Dmg Blockchain. However, Bitfarms is 1.09 times less risky than Dmg Blockchain. It trades about 0.07 of its potential returns per unit of risk. Dmg Blockchain Solutions is currently generating about -0.03 per unit of risk. If you would invest 199.00 in Bitfarms on August 25, 2024 and sell it today you would earn a total of 12.00 from holding Bitfarms or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. Dmg Blockchain Solutions
Performance |
| Timeline |
| Bitfarms |
| Dmg Blockchain Solutions |
Bitfarms and Dmg Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and Dmg Blockchain
The main advantage of trading using opposite Bitfarms and Dmg Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, Dmg 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 Dmg Blockchain will offset losses from the drop in Dmg Blockchain's long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
| Dmg Blockchain vs. CryptoStar Corp | Dmg Blockchain vs. HIVE Blockchain Technologies | Dmg Blockchain vs. Hut 8 Mining | Dmg 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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 | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |