Correlation Between BIT Mining and Oracle
Can any of the company-specific risk be diversified away by investing in both BIT Mining and Oracle 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 Oracle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Mining and Oracle, you can compare the effects of market volatilities on BIT Mining and Oracle 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 Oracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Mining and Oracle.
Diversification Opportunities for BIT Mining and Oracle
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIT and Oracle is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding BIT Mining and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle 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 Oracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle has no effect on the direction of BIT Mining i.e., BIT Mining and Oracle go up and down completely randomly.
Pair Corralation between BIT Mining and Oracle
Given the investment horizon of 90 days BIT Mining is expected to generate 2.84 times more return on investment than Oracle. However, BIT Mining is 2.84 times more volatile than Oracle. It trades about 0.03 of its potential returns per unit of risk. Oracle is currently generating about 0.07 per unit of risk. If you would invest 281.00 in BIT Mining on November 4, 2024 and sell it today you would lose (18.00) from holding BIT Mining or give up 6.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Mining vs. Oracle
Performance |
| Timeline |
| BIT Mining |
| Oracle |
BIT Mining and Oracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Mining and Oracle
The main advantage of trading using opposite BIT Mining and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Mining position performs unexpectedly, Oracle 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 Oracle will offset losses from the drop in Oracle's long position.| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Adobe Systems Incorporated |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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