Correlation Between Bitmine Immersion and Vicor
Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and Vicor 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 Vicor 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 Vicor, you can compare the effects of market volatilities on Bitmine Immersion and Vicor 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 Vicor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and Vicor.
Diversification Opportunities for Bitmine Immersion and Vicor
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitmine and Vicor is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and Vicor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicor 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 Vicor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicor has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and Vicor go up and down completely randomly.
Pair Corralation between Bitmine Immersion and Vicor
Given the investment horizon of 90 days Bitmine Immersion Technologies is expected to generate 4.36 times more return on investment than Vicor. However, Bitmine Immersion is 4.36 times more volatile than Vicor. It trades about 0.06 of its potential returns per unit of risk. Vicor is currently generating about 0.1 per unit of risk. If you would invest 58.00 in Bitmine Immersion Technologies on October 26, 2024 and sell it today you would lose (27.00) from holding Bitmine Immersion Technologies or give up 46.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bitmine Immersion Technologies vs. Vicor
Performance |
| Timeline |
| Bitmine Immersion |
| Vicor |
Bitmine Immersion and Vicor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitmine Immersion and Vicor
The main advantage of trading using opposite Bitmine Immersion and Vicor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, Vicor 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 Vicor will offset losses from the drop in Vicor'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 |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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