Correlation Between Cipher Mining and GreenBank Capital
Can any of the company-specific risk be diversified away by investing in both Cipher Mining and GreenBank Capital 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 Cipher Mining and GreenBank Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cipher Mining and GreenBank Capital, you can compare the effects of market volatilities on Cipher Mining and GreenBank Capital 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 Cipher Mining with a short position of GreenBank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipher Mining and GreenBank Capital.
Diversification Opportunities for Cipher Mining and GreenBank Capital
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cipher and GreenBank is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and GreenBank Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenBank Capital and Cipher 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 Cipher Mining are associated (or correlated) with GreenBank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenBank Capital has no effect on the direction of Cipher Mining i.e., Cipher Mining and GreenBank Capital go up and down completely randomly.
Pair Corralation between Cipher Mining and GreenBank Capital
Given the investment horizon of 90 days Cipher Mining is expected to generate 11.96 times less return on investment than GreenBank Capital. But when comparing it to its historical volatility, Cipher Mining is 9.23 times less risky than GreenBank Capital. It trades about 0.09 of its potential returns per unit of risk. GreenBank Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9.04 in GreenBank Capital on August 30, 2024 and sell it today you would lose (8.17) from holding GreenBank Capital or give up 90.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cipher Mining vs. GreenBank Capital
Performance |
| Timeline |
| Cipher Mining |
| GreenBank Capital |
Cipher Mining and GreenBank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cipher Mining and GreenBank Capital
The main advantage of trading using opposite Cipher Mining and GreenBank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipher Mining position performs unexpectedly, GreenBank Capital 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 GreenBank Capital will offset losses from the drop in GreenBank Capital's long position.| Cipher Mining vs. Iris Energy | Cipher Mining vs. CleanSpark | Cipher Mining vs. Stronghold Digital Mining | Cipher Mining vs. Bitfarms |
| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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