Correlation Between Bitfarms and Greenhill
Can any of the company-specific risk be diversified away by investing in both Bitfarms and Greenhill 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 Greenhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and Greenhill Co, you can compare the effects of market volatilities on Bitfarms and Greenhill 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 Greenhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Greenhill.
Diversification Opportunities for Bitfarms and Greenhill
Significant diversification
The 3 months correlation between Bitfarms and Greenhill is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Greenhill Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenhill 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 Greenhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenhill has no effect on the direction of Bitfarms i.e., Bitfarms and Greenhill go up and down completely randomly.
Pair Corralation between Bitfarms and Greenhill
Given the investment horizon of 90 days Bitfarms is expected to generate 1.15 times less return on investment than Greenhill. But when comparing it to its historical volatility, Bitfarms is 1.5 times less risky than Greenhill. It trades about 0.08 of its potential returns per unit of risk. Greenhill Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 953.00 in Greenhill Co on August 30, 2024 and sell it today you would earn a total of 520.00 from holding Greenhill Co or generate 54.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.31% |
| Values | Daily Returns |
Bitfarms vs. Greenhill Co
Performance |
| Timeline |
| Bitfarms |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitfarms and Greenhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and Greenhill
The main advantage of trading using opposite Bitfarms and Greenhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, Greenhill 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 Greenhill will offset losses from the drop in Greenhill's long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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