Correlation Between Greenidge Generation and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Greenidge Generation 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 Greenidge Generation and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenidge Generation Holdings and Bitfarms, you can compare the effects of market volatilities on Greenidge Generation 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 Greenidge Generation with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenidge Generation and Bitfarms.
Diversification Opportunities for Greenidge Generation and Bitfarms
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Greenidge and Bitfarms is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Greenidge Generation Holdings and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Greenidge Generation 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 Greenidge Generation Holdings 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 Greenidge Generation i.e., Greenidge Generation and Bitfarms go up and down completely randomly.
Pair Corralation between Greenidge Generation and Bitfarms
Given the investment horizon of 90 days Greenidge Generation Holdings is expected to under-perform the Bitfarms. In addition to that, Greenidge Generation is 1.09 times more volatile than Bitfarms. It trades about -0.02 of its total potential returns per unit of risk. Bitfarms is currently generating about 0.0 per unit of volatility. If you would invest 228.00 in Bitfarms on November 3, 2024 and sell it today you would lose (83.00) from holding Bitfarms or give up 36.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Greenidge Generation Holdings vs. Bitfarms
Performance |
| Timeline |
| Greenidge Generation |
| Bitfarms |
Greenidge Generation and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenidge Generation and Bitfarms
The main advantage of trading using opposite Greenidge Generation and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenidge Generation 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.| Greenidge Generation vs. Cipher Mining | Greenidge Generation vs. Terawulf | Greenidge Generation vs. Iris Energy | Greenidge Generation vs. Argo Blockchain PLC |
| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. MARA HOLDINGS INC | 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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