Correlation Between Blockmate Ventures and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Blockmate Ventures 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 Blockmate Ventures and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockmate Ventures and Bitfarms, you can compare the effects of market volatilities on Blockmate Ventures 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 Blockmate Ventures with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockmate Ventures and Bitfarms.
Diversification Opportunities for Blockmate Ventures and Bitfarms
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blockmate and Bitfarms is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blockmate Ventures and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Blockmate Ventures 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 Blockmate Ventures 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 Blockmate Ventures i.e., Blockmate Ventures and Bitfarms go up and down completely randomly.
Pair Corralation between Blockmate Ventures and Bitfarms
Assuming the 90 days horizon Blockmate Ventures is expected to under-perform the Bitfarms. In addition to that, Blockmate Ventures is 2.14 times more volatile than Bitfarms. It trades about -0.33 of its total potential returns per unit of risk. Bitfarms is currently generating about -0.25 per unit of volatility. If you would invest 140.00 in Bitfarms on November 28, 2024 and sell it today you would lose (27.00) from holding Bitfarms or give up 19.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockmate Ventures vs. Bitfarms
Performance |
| Timeline |
| Blockmate Ventures |
| Bitfarms |
Blockmate Ventures and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockmate Ventures and Bitfarms
The main advantage of trading using opposite Blockmate Ventures and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockmate Ventures 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.| Blockmate Ventures vs. Arcane Crypto AB | Blockmate Ventures vs. OFX Group Ltd | Blockmate Ventures vs. GreenBank Capital |
| Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Marathon Digital Holdings | 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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