Correlation Between Gryphon Digital and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Gryphon Digital and Cipher 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 Gryphon Digital and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gryphon Digital Mining and Cipher Mining, you can compare the effects of market volatilities on Gryphon Digital and Cipher 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 Gryphon Digital with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gryphon Digital and Cipher Mining.
Diversification Opportunities for Gryphon Digital and Cipher Mining
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gryphon and Cipher is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gryphon Digital Mining and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Gryphon Digital 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 Gryphon Digital Mining are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Gryphon Digital i.e., Gryphon Digital and Cipher Mining go up and down completely randomly.
Pair Corralation between Gryphon Digital and Cipher Mining
Given the investment horizon of 90 days Gryphon Digital Mining is expected to generate 0.79 times more return on investment than Cipher Mining. However, Gryphon Digital Mining is 1.26 times less risky than Cipher Mining. It trades about 0.05 of its potential returns per unit of risk. Cipher Mining is currently generating about -0.03 per unit of risk. If you would invest 43.00 in Gryphon Digital Mining on October 22, 2024 and sell it today you would earn a total of 1.00 from holding Gryphon Digital Mining or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gryphon Digital Mining vs. Cipher Mining
Performance |
| Timeline |
| Gryphon Digital Mining |
| Cipher Mining |
Gryphon Digital and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gryphon Digital and Cipher Mining
The main advantage of trading using opposite Gryphon Digital and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gryphon Digital position performs unexpectedly, Cipher 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| Gryphon Digital vs. Safety Shot | Gryphon Digital vs. Zhihu Inc ADR | Gryphon Digital vs. Integral Ad Science | Gryphon Digital vs. Dave Busters Entertainment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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