Correlation Between Bitmine Immersion and Methode Electronics
Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and Methode Electronics 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 Methode Electronics 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 Methode Electronics, you can compare the effects of market volatilities on Bitmine Immersion and Methode Electronics 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 Methode Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and Methode Electronics.
Diversification Opportunities for Bitmine Immersion and Methode Electronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitmine and Methode is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and Methode Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methode Electronics 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 Methode Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methode Electronics has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and Methode Electronics go up and down completely randomly.
Pair Corralation between Bitmine Immersion and Methode Electronics
Given the investment horizon of 90 days Bitmine Immersion Technologies is expected to generate 1.88 times more return on investment than Methode Electronics. However, Bitmine Immersion is 1.88 times more volatile than Methode Electronics. It trades about -0.01 of its potential returns per unit of risk. Methode Electronics is currently generating about -0.06 per unit of risk. If you would invest 38.00 in Bitmine Immersion Technologies on November 4, 2024 and sell it today you would lose (3.00) from holding Bitmine Immersion Technologies or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitmine Immersion Technologies vs. Methode Electronics
Performance |
| Timeline |
| Bitmine Immersion |
| Methode Electronics |
Bitmine Immersion and Methode Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitmine Immersion and Methode Electronics
The main advantage of trading using opposite Bitmine Immersion and Methode Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, Methode Electronics 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 Methode Electronics will offset losses from the drop in Methode Electronics' long position.| Bitmine Immersion vs. Cytta Corp | Bitmine Immersion vs. Mawson Infrastructure Group | Bitmine Immersion vs. World Technology Corp | Bitmine Immersion vs. Bagger Daves Burger |
| Methode Electronics vs. Sanmina | Methode Electronics vs. Benchmark Electronics | Methode Electronics vs. OSI Systems | Methode Electronics vs. Celestica |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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