Correlation Between BlockQuarry Corp and Bitfarms
Can any of the company-specific risk be diversified away by investing in both BlockQuarry Corp and Bitfarms 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 BlockQuarry Corp and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlockQuarry Corp and Bitfarms, you can compare the effects of market volatilities on BlockQuarry Corp and Bitfarms 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 BlockQuarry Corp with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlockQuarry Corp and Bitfarms.
Diversification Opportunities for BlockQuarry Corp and Bitfarms
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BlockQuarry and Bitfarms is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding BlockQuarry Corp and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and BlockQuarry Corp 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 BlockQuarry Corp are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of BlockQuarry Corp i.e., BlockQuarry Corp and Bitfarms go up and down completely randomly.
Pair Corralation between BlockQuarry Corp and Bitfarms
Given the investment horizon of 90 days BlockQuarry Corp is expected to under-perform the Bitfarms. In addition to that, BlockQuarry Corp is 1.21 times more volatile than Bitfarms. It trades about -0.27 of its total potential returns per unit of risk. Bitfarms is currently generating about -0.18 per unit of volatility. If you would invest 269.00 in Bitfarms on September 13, 2024 and sell it today you would lose (67.00) from holding Bitfarms or give up 24.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlockQuarry Corp vs. Bitfarms
Performance |
| Timeline |
| BlockQuarry Corp |
| Bitfarms |
BlockQuarry Corp and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlockQuarry Corp and Bitfarms
The main advantage of trading using opposite BlockQuarry Corp and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlockQuarry Corp position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| BlockQuarry Corp vs. Cipher Mining | BlockQuarry Corp vs. Terawulf | BlockQuarry Corp vs. Iris Energy | BlockQuarry Corp vs. Stronghold Digital Mining |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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