Correlation Between Cipher Mining and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Cipher Mining and Cipher Mining 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 Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cipher Mining and Cipher Mining, you can compare the effects of market volatilities on Cipher Mining and Cipher Mining 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 Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipher Mining and Cipher Mining.
Diversification Opportunities for Cipher Mining and Cipher Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cipher and Cipher is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining 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 Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Cipher Mining i.e., Cipher Mining and Cipher Mining go up and down completely randomly.
Pair Corralation between Cipher Mining and Cipher Mining
Assuming the 90 days horizon Cipher Mining is expected to under-perform the Cipher Mining. In addition to that, Cipher Mining is 1.47 times more volatile than Cipher Mining. It trades about -0.03 of its total potential returns per unit of risk. Cipher Mining is currently generating about 0.07 per unit of volatility. If you would invest 521.00 in Cipher Mining on October 22, 2024 and sell it today you would earn a total of 22.00 from holding Cipher Mining or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cipher Mining vs. Cipher Mining
Performance |
| Timeline |
| Cipher Mining |
| Cipher Mining |
Cipher Mining and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cipher Mining and Cipher Mining
The main advantage of trading using opposite Cipher Mining and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipher Mining position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.The idea behind Cipher Mining and Cipher Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cipher Mining vs. Iris Energy | Cipher Mining vs. CleanSpark | Cipher Mining vs. Stronghold Digital Mining | Cipher Mining vs. Bitfarms |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |