Correlation Between Bitmine Immersion and Neonode
Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and Neonode 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 Neonode 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 Neonode, you can compare the effects of market volatilities on Bitmine Immersion and Neonode 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 Neonode. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and Neonode.
Diversification Opportunities for Bitmine Immersion and Neonode
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bitmine and Neonode is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and Neonode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neonode 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 Neonode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neonode has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and Neonode go up and down completely randomly.
Pair Corralation between Bitmine Immersion and Neonode
Given the investment horizon of 90 days Bitmine Immersion is expected to generate 1.18 times less return on investment than Neonode. In addition to that, Bitmine Immersion is 1.84 times more volatile than Neonode. It trades about 0.06 of its total potential returns per unit of risk. Neonode is currently generating about 0.13 per unit of volatility. If you would invest 308.00 in Neonode on October 26, 2024 and sell it today you would earn a total of 555.00 from holding Neonode or generate 180.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bitmine Immersion Technologies vs. Neonode
Performance |
| Timeline |
| Bitmine Immersion |
| Neonode |
Bitmine Immersion and Neonode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitmine Immersion and Neonode
The main advantage of trading using opposite Bitmine Immersion and Neonode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, Neonode 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 Neonode will offset losses from the drop in Neonode's 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 |
| Neonode vs. LightPath Technologies | Neonode vs. Methode Electronics | Neonode vs. OSI Systems | Neonode 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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