Correlation Between Bitmine Immersion and LGL
Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and LGL 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 LGL 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 LGL Group, you can compare the effects of market volatilities on Bitmine Immersion and LGL 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 LGL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and LGL.
Diversification Opportunities for Bitmine Immersion and LGL
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bitmine and LGL is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and LGL Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LGL Group 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 LGL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LGL Group has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and LGL go up and down completely randomly.
Pair Corralation between Bitmine Immersion and LGL
Given the investment horizon of 90 days Bitmine Immersion Technologies is expected to generate 6.28 times more return on investment than LGL. However, Bitmine Immersion is 6.28 times more volatile than LGL Group. It trades about 0.06 of its potential returns per unit of risk. LGL Group is currently generating about 0.03 per unit of risk. If you would invest 105.00 in Bitmine Immersion Technologies on August 27, 2024 and sell it today you would lose (75.00) from holding Bitmine Immersion Technologies or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Bitmine Immersion Technologies vs. LGL Group
Performance |
| Timeline |
| Bitmine Immersion |
| LGL Group |
Bitmine Immersion and LGL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitmine Immersion and LGL
The main advantage of trading using opposite Bitmine Immersion and LGL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, LGL 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 LGL will offset losses from the drop in LGL'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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