Correlation Between DigiMax Global and Bitfarms
Can any of the company-specific risk be diversified away by investing in both DigiMax Global 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 DigiMax Global and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiMax Global and Bitfarms, you can compare the effects of market volatilities on DigiMax Global 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 DigiMax Global with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiMax Global and Bitfarms.
Diversification Opportunities for DigiMax Global and Bitfarms
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DigiMax and Bitfarms is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and DigiMax Global 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 DigiMax Global 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 DigiMax Global i.e., DigiMax Global and Bitfarms go up and down completely randomly.
Pair Corralation between DigiMax Global and Bitfarms
Assuming the 90 days horizon DigiMax Global is expected to generate 49.87 times more return on investment than Bitfarms. However, DigiMax Global is 49.87 times more volatile than Bitfarms. It trades about 0.26 of its potential returns per unit of risk. Bitfarms is currently generating about 0.09 per unit of risk. If you would invest 1.01 in DigiMax Global on October 22, 2024 and sell it today you would earn a total of 20.99 from holding DigiMax Global or generate 2078.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DigiMax Global vs. Bitfarms
Performance |
| Timeline |
| DigiMax Global |
| Bitfarms |
DigiMax Global and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiMax Global and Bitfarms
The main advantage of trading using opposite DigiMax Global and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiMax Global 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.| DigiMax Global vs. DeFi Technologies | DigiMax Global vs. Argo Blockchain PLC | DigiMax Global vs. Galaxy Digital Holdings | DigiMax Global vs. BIG Blockchain Intelligence |
| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | Bitfarms vs. Riot Blockchain |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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