Correlation Between Bitfarms and PJT Partners
Can any of the company-specific risk be diversified away by investing in both Bitfarms and PJT Partners 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 PJT Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and PJT Partners, you can compare the effects of market volatilities on Bitfarms and PJT Partners 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 PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and PJT Partners.
Diversification Opportunities for Bitfarms and PJT Partners
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bitfarms and PJT is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners 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 PJT Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJT Partners has no effect on the direction of Bitfarms i.e., Bitfarms and PJT Partners go up and down completely randomly.
Pair Corralation between Bitfarms and PJT Partners
Given the investment horizon of 90 days Bitfarms is expected to under-perform the PJT Partners. In addition to that, Bitfarms is 3.6 times more volatile than PJT Partners. It trades about -0.19 of its total potential returns per unit of risk. PJT Partners is currently generating about 0.1 per unit of volatility. If you would invest 15,934 in PJT Partners on September 13, 2024 and sell it today you would earn a total of 516.00 from holding PJT Partners or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. PJT Partners
Performance |
| Timeline |
| Bitfarms |
| PJT Partners |
Bitfarms and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and PJT Partners
The main advantage of trading using opposite Bitfarms and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, PJT Partners 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 PJT Partners will offset losses from the drop in PJT Partners' long position.| Bitfarms vs. Visa Class A | Bitfarms vs. Diamond Hill Investment | Bitfarms vs. Distoken Acquisition | Bitfarms vs. AllianceBernstein Holding LP |
| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners vs. Moelis Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |