Correlation Between CryptoStar Corp and Bitfarms
Can any of the company-specific risk be diversified away by investing in both CryptoStar Corp 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 CryptoStar Corp and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CryptoStar Corp and Bitfarms, you can compare the effects of market volatilities on CryptoStar Corp 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 CryptoStar Corp with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of CryptoStar Corp and Bitfarms.
Diversification Opportunities for CryptoStar Corp and Bitfarms
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CryptoStar and Bitfarms is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CryptoStar Corp and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and CryptoStar Corp 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 CryptoStar Corp 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 CryptoStar Corp i.e., CryptoStar Corp and Bitfarms go up and down completely randomly.
Pair Corralation between CryptoStar Corp and Bitfarms
Assuming the 90 days trading horizon CryptoStar Corp is expected to generate 1.04 times more return on investment than Bitfarms. However, CryptoStar Corp is 1.04 times more volatile than Bitfarms. It trades about 0.13 of its potential returns per unit of risk. Bitfarms is currently generating about 0.01 per unit of risk. If you would invest 3.00 in CryptoStar Corp on August 28, 2024 and sell it today you would earn a total of 0.50 from holding CryptoStar Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CryptoStar Corp vs. Bitfarms
Performance |
| Timeline |
| CryptoStar Corp |
| Bitfarms |
CryptoStar Corp and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CryptoStar Corp and Bitfarms
The main advantage of trading using opposite CryptoStar Corp and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryptoStar Corp 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.| CryptoStar Corp vs. Dmg Blockchain Solutions | CryptoStar Corp vs. Braille Energy Systems | CryptoStar Corp vs. HIVE Blockchain Technologies | CryptoStar Corp vs. Hut 8 Mining |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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