Correlation Between Galaxy Digital and Marathon Digital
Can any of the company-specific risk be diversified away by investing in both Galaxy Digital and Marathon Digital 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 Galaxy Digital and Marathon Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Digital Holdings and Marathon Digital Holdings, you can compare the effects of market volatilities on Galaxy Digital and Marathon Digital 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 Galaxy Digital with a short position of Marathon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Digital and Marathon Digital.
Diversification Opportunities for Galaxy Digital and Marathon Digital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Galaxy and Marathon is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Digital Holdings and Marathon Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Digital Holdings and Galaxy Digital 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 Galaxy Digital Holdings are associated (or correlated) with Marathon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Digital Holdings has no effect on the direction of Galaxy Digital i.e., Galaxy Digital and Marathon Digital go up and down completely randomly.
Pair Corralation between Galaxy Digital and Marathon Digital
Assuming the 90 days horizon Galaxy Digital Holdings is expected to generate 0.87 times more return on investment than Marathon Digital. However, Galaxy Digital Holdings is 1.15 times less risky than Marathon Digital. It trades about 0.1 of its potential returns per unit of risk. Marathon Digital Holdings is currently generating about 0.07 per unit of risk. If you would invest 1,082 in Galaxy Digital Holdings on September 1, 2024 and sell it today you would earn a total of 729.00 from holding Galaxy Digital Holdings or generate 67.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Digital Holdings vs. Marathon Digital Holdings
Performance |
| Timeline |
| Galaxy Digital Holdings |
| Marathon Digital Holdings |
Galaxy Digital and Marathon Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Digital and Marathon Digital
The main advantage of trading using opposite Galaxy Digital and Marathon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Digital position performs unexpectedly, Marathon Digital 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 Marathon Digital will offset losses from the drop in Marathon Digital's long position.| Galaxy Digital vs. DeFi Technologies | Galaxy Digital vs. Argo Blockchain PLC | Galaxy Digital vs. DigiMax Global | Galaxy Digital vs. BIG Blockchain Intelligence |
| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |