Correlation Between Dmg Blockchain and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Dmg Blockchain 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 Dmg Blockchain and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dmg Blockchain Solutions and Bitfarms, you can compare the effects of market volatilities on Dmg Blockchain 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 Dmg Blockchain with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dmg Blockchain and Bitfarms.
Diversification Opportunities for Dmg Blockchain and Bitfarms
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dmg and Bitfarms is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dmg Blockchain Solutions and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Dmg Blockchain 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 Dmg Blockchain Solutions 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 Dmg Blockchain i.e., Dmg Blockchain and Bitfarms go up and down completely randomly.
Pair Corralation between Dmg Blockchain and Bitfarms
Assuming the 90 days trading horizon Dmg Blockchain Solutions is expected to under-perform the Bitfarms. In addition to that, Dmg Blockchain is 1.09 times more volatile than Bitfarms. It trades about -0.03 of its total potential returns per unit of risk. Bitfarms is currently generating about 0.07 per unit of volatility. If you would invest 199.00 in Bitfarms on August 25, 2024 and sell it today you would earn a total of 12.00 from holding Bitfarms or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dmg Blockchain Solutions vs. Bitfarms
Performance |
| Timeline |
| Dmg Blockchain Solutions |
| Bitfarms |
Dmg Blockchain and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dmg Blockchain and Bitfarms
The main advantage of trading using opposite Dmg Blockchain and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dmg Blockchain 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.| Dmg Blockchain vs. CryptoStar Corp | Dmg Blockchain vs. HIVE Blockchain Technologies | Dmg Blockchain vs. Hut 8 Mining | Dmg Blockchain vs. Galaxy Digital Holdings |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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