Correlation Between Oppenheimer Holdings and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Cipher 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 Oppenheimer Holdings and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Cipher Mining, you can compare the effects of market volatilities on Oppenheimer Holdings and Cipher 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 Oppenheimer Holdings with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Cipher Mining.
Diversification Opportunities for Oppenheimer Holdings and Cipher Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Cipher is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Oppenheimer Holdings 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 Oppenheimer Holdings are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Cipher Mining go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Cipher Mining
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 6.81 times less return on investment than Cipher Mining. But when comparing it to its historical volatility, Oppenheimer Holdings is 5.83 times less risky than Cipher Mining. It trades about 0.17 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Cipher Mining on September 3, 2024 and sell it today you would earn a total of 166.00 from holding Cipher Mining or generate 32.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Cipher Mining
Performance |
| Timeline |
| Oppenheimer Holdings |
| Cipher Mining |
Oppenheimer Holdings and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Cipher Mining
The main advantage of trading using opposite Oppenheimer Holdings and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Cipher 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| Oppenheimer Holdings vs. Riot Blockchain | Oppenheimer Holdings vs. Marathon Digital Holdings | Oppenheimer Holdings vs. Applied Blockchain | Oppenheimer Holdings vs. Hut 8 Corp |
| Cipher Mining vs. Scully Royalty | Cipher Mining vs. Mercurity Fintech Holding | Cipher Mining vs. Oppenheimer Holdings | Cipher Mining vs. Nomura Holdings ADR |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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