Correlation Between Mercurity Fintech and Marathon Digital
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech and Marathon Digital 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 Mercurity Fintech and Marathon Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercurity Fintech Holding and Marathon Digital Holdings, you can compare the effects of market volatilities on Mercurity Fintech and Marathon Digital 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 Mercurity Fintech with a short position of Marathon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and Marathon Digital.
Diversification Opportunities for Mercurity Fintech and Marathon Digital
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mercurity and Marathon is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and Marathon Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Digital Holdings and Mercurity Fintech 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 Mercurity Fintech Holding are associated (or correlated) with Marathon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Digital Holdings has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and Marathon Digital go up and down completely randomly.
Pair Corralation between Mercurity Fintech and Marathon Digital
Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 1.26 times more return on investment than Marathon Digital. However, Mercurity Fintech is 1.26 times more volatile than Marathon Digital Holdings. It trades about -0.08 of its potential returns per unit of risk. Marathon Digital Holdings is currently generating about -0.48 per unit of risk. If you would invest 683.00 in Mercurity Fintech Holding on November 28, 2024 and sell it today you would lose (66.00) from holding Mercurity Fintech Holding or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercurity Fintech Holding vs. Marathon Digital Holdings
Performance |
| Timeline |
| Mercurity Fintech Holding |
| Marathon Digital Holdings |
Mercurity Fintech and Marathon Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercurity Fintech and Marathon Digital
The main advantage of trading using opposite Mercurity Fintech and Marathon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech position performs unexpectedly, Marathon Digital 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 Marathon Digital will offset losses from the drop in Marathon Digital's long position.| Mercurity Fintech vs. Scully Royalty | Mercurity Fintech vs. Donnelley Financial Solutions | Mercurity Fintech vs. Heritage Global | Mercurity Fintech vs. Oppenheimer Holdings |
| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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