Correlation Between Marathon Digital and Greenhill
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Greenhill 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 Marathon Digital and Greenhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Digital Holdings and Greenhill Co, you can compare the effects of market volatilities on Marathon Digital and Greenhill 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 Marathon Digital with a short position of Greenhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Greenhill.
Diversification Opportunities for Marathon Digital and Greenhill
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marathon and Greenhill is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Greenhill Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenhill and Marathon 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 Marathon Digital Holdings are associated (or correlated) with Greenhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenhill has no effect on the direction of Marathon Digital i.e., Marathon Digital and Greenhill go up and down completely randomly.
Pair Corralation between Marathon Digital and Greenhill
If you would invest 1,473 in Greenhill Co on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Greenhill Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Greenhill Co
Performance |
| Timeline |
| Marathon Digital Holdings |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marathon Digital and Greenhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Greenhill
The main advantage of trading using opposite Marathon Digital and Greenhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Greenhill 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 Greenhill will offset losses from the drop in Greenhill's long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Digital | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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