Correlation Between Bitmine Immersion and Flex
Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and Flex 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 Bitmine Immersion and Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitmine Immersion Technologies and Flex, you can compare the effects of market volatilities on Bitmine Immersion and Flex 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 Bitmine Immersion with a short position of Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and Flex.
Diversification Opportunities for Bitmine Immersion and Flex
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitmine and Flex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex and Bitmine Immersion 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 Bitmine Immersion Technologies are associated (or correlated) with Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and Flex go up and down completely randomly.
Pair Corralation between Bitmine Immersion and Flex
Given the investment horizon of 90 days Bitmine Immersion Technologies is expected to generate 7.29 times more return on investment than Flex. However, Bitmine Immersion is 7.29 times more volatile than Flex. It trades about 0.23 of its potential returns per unit of risk. Flex is currently generating about 0.28 per unit of risk. If you would invest 19.00 in Bitmine Immersion Technologies on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Bitmine Immersion Technologies or generate 84.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitmine Immersion Technologies vs. Flex
Performance |
| Timeline |
| Bitmine Immersion |
| Flex |
Bitmine Immersion and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitmine Immersion and Flex
The main advantage of trading using opposite Bitmine Immersion and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| Bitmine Immersion vs. LGL Group | Bitmine Immersion vs. Data IO | Bitmine Immersion vs. Sanmina | Bitmine Immersion vs. Plexus Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |