Correlation Between BIT Mining and Now
Can any of the company-specific risk be diversified away by investing in both BIT Mining and Now 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 BIT Mining and Now into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Mining and Now Inc, you can compare the effects of market volatilities on BIT Mining and Now 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 BIT Mining with a short position of Now. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Mining and Now.
Diversification Opportunities for BIT Mining and Now
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIT and Now is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BIT Mining and Now Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Now Inc and BIT Mining 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 BIT Mining are associated (or correlated) with Now. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Now Inc has no effect on the direction of BIT Mining i.e., BIT Mining and Now go up and down completely randomly.
Pair Corralation between BIT Mining and Now
Given the investment horizon of 90 days BIT Mining is expected to under-perform the Now. In addition to that, BIT Mining is 1.43 times more volatile than Now Inc. It trades about -0.08 of its total potential returns per unit of risk. Now Inc is currently generating about 0.26 per unit of volatility. If you would invest 1,311 in Now Inc on November 4, 2024 and sell it today you would earn a total of 177.00 from holding Now Inc or generate 13.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Mining vs. Now Inc
Performance |
| Timeline |
| BIT Mining |
| Now Inc |
BIT Mining and Now Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Mining and Now
The main advantage of trading using opposite BIT Mining and Now positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Mining position performs unexpectedly, Now 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 Now will offset losses from the drop in Now's long position.| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance |