Correlation Between Canaccord Genuity and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Canaccord Genuity and Bitfarms 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 Canaccord Genuity and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaccord Genuity Group and Bitfarms, you can compare the effects of market volatilities on Canaccord Genuity and Bitfarms 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 Canaccord Genuity with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaccord Genuity and Bitfarms.
Diversification Opportunities for Canaccord Genuity and Bitfarms
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Canaccord and Bitfarms is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Canaccord Genuity Group and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Canaccord Genuity 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 Canaccord Genuity Group are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Canaccord Genuity i.e., Canaccord Genuity and Bitfarms go up and down completely randomly.
Pair Corralation between Canaccord Genuity and Bitfarms
Assuming the 90 days horizon Canaccord Genuity is expected to generate 2.39 times less return on investment than Bitfarms. But when comparing it to its historical volatility, Canaccord Genuity Group is 3.0 times less risky than Bitfarms. It trades about 0.05 of its potential returns per unit of risk. Bitfarms is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Bitfarms on August 28, 2024 and sell it today you would earn a total of 69.00 from holding Bitfarms or generate 31.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaccord Genuity Group vs. Bitfarms
Performance |
| Timeline |
| Canaccord Genuity |
| Bitfarms |
Canaccord Genuity and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaccord Genuity and Bitfarms
The main advantage of trading using opposite Canaccord Genuity and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaccord Genuity position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Canaccord Genuity vs. Telus Corp | Canaccord Genuity vs. Toronto Dominion Bank | Canaccord Genuity vs. Manulife Financial Corp | Canaccord Genuity vs. Canadian Natural Resources |
| Bitfarms vs. Hut 8 Mining | Bitfarms vs. Bitfarms | Bitfarms vs. Dmg Blockchain Solutions | Bitfarms vs. Galaxy Digital Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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