Correlation Between Digimarc and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Digimarc and BIT 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 Digimarc and BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digimarc and BIT Mining, you can compare the effects of market volatilities on Digimarc and BIT 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 Digimarc with a short position of BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and BIT Mining.
Diversification Opportunities for Digimarc and BIT Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Digimarc and BIT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and Digimarc 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 Digimarc are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Digimarc i.e., Digimarc and BIT Mining go up and down completely randomly.
Pair Corralation between Digimarc and BIT Mining
Given the investment horizon of 90 days Digimarc is expected to generate 0.96 times more return on investment than BIT Mining. However, Digimarc is 1.04 times less risky than BIT Mining. It trades about -0.31 of its potential returns per unit of risk. BIT Mining is currently generating about -0.36 per unit of risk. If you would invest 4,128 in Digimarc on November 18, 2024 and sell it today you would lose (617.00) from holding Digimarc or give up 14.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digimarc vs. BIT Mining
Performance |
| Timeline |
| Digimarc |
| BIT Mining |
Digimarc and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digimarc and BIT Mining
The main advantage of trading using opposite Digimarc and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc position performs unexpectedly, BIT 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 BIT Mining will offset losses from the drop in BIT Mining's long position.The idea behind Digimarc and BIT 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.| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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