Correlation Between Bitfarms and ICOA
Can any of the company-specific risk be diversified away by investing in both Bitfarms and ICOA 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 ICOA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and ICOA Inc, you can compare the effects of market volatilities on Bitfarms and ICOA 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 ICOA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and ICOA.
Diversification Opportunities for Bitfarms and ICOA
Very good diversification
The 3 months correlation between Bitfarms and ICOA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and ICOA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICOA Inc 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 ICOA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICOA Inc has no effect on the direction of Bitfarms i.e., Bitfarms and ICOA go up and down completely randomly.
Pair Corralation between Bitfarms and ICOA
If you would invest 0.01 in ICOA Inc on November 28, 2024 and sell it today you would earn a total of 0.00 from holding ICOA Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. ICOA Inc
Performance |
| Timeline |
| Bitfarms |
| ICOA Inc |
Bitfarms and ICOA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and ICOA
The main advantage of trading using opposite Bitfarms and ICOA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, ICOA 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 ICOA will offset losses from the drop in ICOA's long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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