Correlation Between Cathedra Bitcoin and Digihost Technology
Can any of the company-specific risk be diversified away by investing in both Cathedra Bitcoin and Digihost Technology 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 Cathedra Bitcoin and Digihost Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cathedra Bitcoin and Digihost Technology, you can compare the effects of market volatilities on Cathedra Bitcoin and Digihost Technology 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 Cathedra Bitcoin with a short position of Digihost Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathedra Bitcoin and Digihost Technology.
Diversification Opportunities for Cathedra Bitcoin and Digihost Technology
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cathedra and Digihost is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cathedra Bitcoin and Digihost Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digihost Technology and Cathedra Bitcoin 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 Cathedra Bitcoin are associated (or correlated) with Digihost Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digihost Technology has no effect on the direction of Cathedra Bitcoin i.e., Cathedra Bitcoin and Digihost Technology go up and down completely randomly.
Pair Corralation between Cathedra Bitcoin and Digihost Technology
Assuming the 90 days trading horizon Cathedra Bitcoin is expected to generate 1.26 times less return on investment than Digihost Technology. In addition to that, Cathedra Bitcoin is 1.2 times more volatile than Digihost Technology. It trades about 0.05 of its total potential returns per unit of risk. Digihost Technology is currently generating about 0.08 per unit of volatility. If you would invest 66.00 in Digihost Technology on September 2, 2024 and sell it today you would earn a total of 220.00 from holding Digihost Technology or generate 333.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathedra Bitcoin vs. Digihost Technology
Performance |
| Timeline |
| Cathedra Bitcoin |
| Digihost Technology |
Cathedra Bitcoin and Digihost Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathedra Bitcoin and Digihost Technology
The main advantage of trading using opposite Cathedra Bitcoin and Digihost Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathedra Bitcoin position performs unexpectedly, Digihost Technology 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 Digihost Technology will offset losses from the drop in Digihost Technology's long position.| Cathedra Bitcoin vs. Bitfarms | Cathedra Bitcoin vs. Digihost Technology | Cathedra Bitcoin vs. Neptune Digital Assets | Cathedra Bitcoin vs. SATO Technologies Corp |
| Digihost Technology vs. Neptune Digital Assets | Digihost Technology vs. Dmg Blockchain Solutions | Digihost Technology vs. CryptoStar Corp | Digihost Technology vs. iShares Canadian HYBrid |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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