Correlation Between Bitfarms and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Bitfarms and Up Fintech 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 Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and Up Fintech Holding, you can compare the effects of market volatilities on Bitfarms and Up Fintech 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 Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Up Fintech.
Diversification Opportunities for Bitfarms and Up Fintech
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitfarms and TIGR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding 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 Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Bitfarms i.e., Bitfarms and Up Fintech go up and down completely randomly.
Pair Corralation between Bitfarms and Up Fintech
Given the investment horizon of 90 days Bitfarms is expected to generate 1.18 times more return on investment than Up Fintech. However, Bitfarms is 1.18 times more volatile than Up Fintech Holding. It trades about 0.05 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.06 per unit of risk. If you would invest 107.00 in Bitfarms on August 29, 2024 and sell it today you would earn a total of 90.00 from holding Bitfarms or generate 84.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitfarms vs. Up Fintech Holding
Performance |
| Timeline |
| Bitfarms |
| Up Fintech Holding |
Bitfarms and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitfarms and Up Fintech
The main advantage of trading using opposite Bitfarms and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech's long position.| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
| Up Fintech vs. Visa Class A | Up Fintech vs. Diamond Hill Investment | Up Fintech vs. Distoken Acquisition | Up Fintech vs. AllianceBernstein Holding LP |
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.
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