Correlation Between Cipher Mining and MGT Capital
Can any of the company-specific risk be diversified away by investing in both Cipher Mining and MGT 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 MGT 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 MGT Capital Investments, you can compare the effects of market volatilities on Cipher Mining and MGT 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 MGT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipher Mining and MGT Capital.
Diversification Opportunities for Cipher Mining and MGT Capital
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cipher and MGT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and MGT Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGT Capital Investments 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 MGT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGT Capital Investments has no effect on the direction of Cipher Mining i.e., Cipher Mining and MGT Capital go up and down completely randomly.
Pair Corralation between Cipher Mining and MGT Capital
If you would invest 546.00 in Cipher Mining on August 26, 2024 and sell it today you would earn a total of 132.00 from holding Cipher Mining or generate 24.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cipher Mining vs. MGT Capital Investments
Performance |
| Timeline |
| Cipher Mining |
| MGT Capital Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cipher Mining and MGT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cipher Mining and MGT Capital
The main advantage of trading using opposite Cipher Mining and MGT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipher Mining position performs unexpectedly, MGT 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 MGT Capital will offset losses from the drop in MGT Capital's long position.| Cipher Mining vs. PowerUp Acquisition Corp | Cipher Mining vs. Aurora Innovation | Cipher Mining vs. HUMANA INC | Cipher Mining vs. Aquagold International |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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