Correlation Between Broad Capital and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Broad Capital and Cipher Mining 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 Broad Capital and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and Cipher Mining, you can compare the effects of market volatilities on Broad Capital and Cipher Mining 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 Broad Capital with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and Cipher Mining.
Diversification Opportunities for Broad Capital and Cipher Mining
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Broad and Cipher is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Broad Capital 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 Broad Capital Acquisition are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Broad Capital i.e., Broad Capital and Cipher Mining go up and down completely randomly.
Pair Corralation between Broad Capital and Cipher Mining
Assuming the 90 days horizon Broad Capital is expected to generate 38.65 times less return on investment than Cipher Mining. But when comparing it to its historical volatility, Broad Capital Acquisition is 11.17 times less risky than Cipher Mining. It trades about 0.02 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 229.00 in Cipher Mining on August 31, 2024 and sell it today you would earn a total of 441.00 from holding Cipher Mining or generate 192.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Broad Capital Acquisition vs. Cipher Mining
Performance |
| Timeline |
| Broad Capital Acquisition |
| Cipher Mining |
Broad Capital and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broad Capital and Cipher Mining
The main advantage of trading using opposite Broad Capital and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| Broad Capital vs. Finnovate Acquisition Corp | Broad Capital vs. Welsbach Technology Metals | Broad Capital vs. Healthcare AI Acquisition | Broad Capital vs. Metal Sky Star |
| Cipher Mining vs. Iris Energy | Cipher Mining vs. CleanSpark | Cipher Mining vs. Stronghold Digital Mining | Cipher Mining vs. Bitfarms |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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