Correlation Between Gartner and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Gartner 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 Gartner and BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and BIT Mining, you can compare the effects of market volatilities on Gartner 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 Gartner with a short position of BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and BIT Mining.
Diversification Opportunities for Gartner and BIT Mining
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gartner and BIT is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and Gartner 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 Gartner 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 Gartner i.e., Gartner and BIT Mining go up and down completely randomly.
Pair Corralation between Gartner and BIT Mining
Allowing for the 90-day total investment horizon Gartner is expected to generate 0.42 times more return on investment than BIT Mining. However, Gartner is 2.36 times less risky than BIT Mining. It trades about 0.0 of its potential returns per unit of risk. BIT Mining is currently generating about -0.36 per unit of risk. If you would invest 51,570 in Gartner on November 18, 2024 and sell it today you would lose (103.00) from holding Gartner or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. BIT Mining
Performance |
| Timeline |
| Gartner |
| BIT Mining |
Gartner and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and BIT Mining
The main advantage of trading using opposite Gartner and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner 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.| Gartner vs. Science Applications International | Gartner vs. Leidos Holdings | Gartner vs. ExlService Holdings | Gartner vs. Parsons Corp |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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