Correlation Between Bitmine Immersion and LightPath Technologies
Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and LightPath Technologies 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 LightPath Technologies 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 LightPath Technologies, you can compare the effects of market volatilities on Bitmine Immersion and LightPath Technologies 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 LightPath Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and LightPath Technologies.
Diversification Opportunities for Bitmine Immersion and LightPath Technologies
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitmine and LightPath is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and LightPath Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightPath Technologies 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 LightPath Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LightPath Technologies has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and LightPath Technologies go up and down completely randomly.
Pair Corralation between Bitmine Immersion and LightPath Technologies
Given the investment horizon of 90 days Bitmine Immersion Technologies is expected to generate 4.55 times more return on investment than LightPath Technologies. However, Bitmine Immersion is 4.55 times more volatile than LightPath Technologies. It trades about 0.07 of its potential returns per unit of risk. LightPath Technologies is currently generating about 0.04 per unit of risk. If you would invest 75.00 in Bitmine Immersion Technologies on September 2, 2024 and sell it today you would lose (38.00) from holding Bitmine Immersion Technologies or give up 50.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bitmine Immersion Technologies vs. LightPath Technologies
Performance |
| Timeline |
| Bitmine Immersion |
| LightPath Technologies |
Bitmine Immersion and LightPath Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitmine Immersion and LightPath Technologies
The main advantage of trading using opposite Bitmine Immersion and LightPath Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, LightPath Technologies 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 LightPath Technologies will offset losses from the drop in LightPath Technologies' long position.| Bitmine Immersion vs. LightPath Technologies | Bitmine Immersion vs. Methode Electronics | Bitmine Immersion vs. OSI Systems | Bitmine Immersion vs. Plexus Corp |
| LightPath Technologies vs. Methode Electronics | LightPath Technologies vs. OSI Systems | LightPath Technologies vs. Plexus Corp | LightPath Technologies vs. CTS Corporation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |