Correlation Between Bitfarms and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both Bitfarms and HIVE 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 HIVE Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and HIVE Blockchain Technologies, you can compare the effects of market volatilities on Bitfarms and HIVE 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 HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and HIVE Blockchain.
Diversification Opportunities for Bitfarms and HIVE Blockchain
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitfarms and HIVE is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech 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 HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of Bitfarms i.e., Bitfarms and HIVE Blockchain go up and down completely randomly.
Pair Corralation between Bitfarms and HIVE Blockchain
Given the investment horizon of 90 days Bitfarms is expected to under-perform the HIVE Blockchain. In addition to that, Bitfarms is 1.06 times more volatile than HIVE Blockchain Technologies. It trades about -0.02 of its total potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.04 per unit of volatility. If you would invest 281.00 in HIVE Blockchain Technologies on November 2, 2024 and sell it today you would earn a total of 27.00 from holding HIVE Blockchain Technologies or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. HIVE Blockchain Technologies
Performance |
| Timeline |
| Bitfarms |
| HIVE Blockchain Tech |
Bitfarms and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and HIVE Blockchain
The main advantage of trading using opposite Bitfarms and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, HIVE 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 HIVE Blockchain will offset losses from the drop in HIVE Blockchain's long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
| HIVE Blockchain vs. Bitfarms | HIVE Blockchain vs. CleanSpark | HIVE Blockchain vs. Marathon Digital Holdings | HIVE Blockchain vs. Riot Blockchain |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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