Correlation Between Inventus Mining and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Inventus Mining 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 Inventus Mining and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventus Mining Corp and Bitfarms, you can compare the effects of market volatilities on Inventus Mining 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 Inventus Mining with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventus Mining and Bitfarms.
Diversification Opportunities for Inventus Mining and Bitfarms
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inventus and Bitfarms is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Inventus Mining Corp and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Inventus Mining 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 Inventus Mining Corp 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 Inventus Mining i.e., Inventus Mining and Bitfarms go up and down completely randomly.
Pair Corralation between Inventus Mining and Bitfarms
Assuming the 90 days horizon Inventus Mining Corp is expected to generate 1.29 times more return on investment than Bitfarms. However, Inventus Mining is 1.29 times more volatile than Bitfarms. It trades about -0.07 of its potential returns per unit of risk. Bitfarms is currently generating about -0.18 per unit of risk. If you would invest 10.00 in Inventus Mining Corp on November 8, 2024 and sell it today you would lose (1.00) from holding Inventus Mining Corp or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventus Mining Corp vs. Bitfarms
Performance |
| Timeline |
| Inventus Mining Corp |
| Bitfarms |
Inventus Mining and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventus Mining and Bitfarms
The main advantage of trading using opposite Inventus Mining and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventus Mining 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.| Inventus Mining vs. Gunpoint Exploration | Inventus Mining vs. CANEX Metals | Inventus Mining vs. Hawkeye Gold and | Inventus Mining vs. Desert Gold Ventures |
| Bitfarms vs. Hut 8 Mining | Bitfarms vs. Bitfarms | Bitfarms vs. Dmg Blockchain Solutions | Bitfarms vs. Galaxy Digital Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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