Correlation Between OFX Group and IMining Blockchain
Can any of the company-specific risk be diversified away by investing in both OFX Group and IMining Blockchain 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 OFX Group and IMining Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFX Group Ltd and iMining Blockchain and, you can compare the effects of market volatilities on OFX Group and IMining Blockchain 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 OFX Group with a short position of IMining Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and IMining Blockchain.
Diversification Opportunities for OFX Group and IMining Blockchain
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OFX and IMining is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and iMining Blockchain and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iMining Blockchain and and OFX Group 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 OFX Group Ltd are associated (or correlated) with IMining Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iMining Blockchain and has no effect on the direction of OFX Group i.e., OFX Group and IMining Blockchain go up and down completely randomly.
Pair Corralation between OFX Group and IMining Blockchain
Assuming the 90 days horizon OFX Group is expected to generate 37.59 times less return on investment than IMining Blockchain. But when comparing it to its historical volatility, OFX Group Ltd is 12.76 times less risky than IMining Blockchain. It trades about 0.02 of its potential returns per unit of risk. iMining Blockchain and is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.00 in iMining Blockchain and on November 28, 2024 and sell it today you would earn a total of 4.00 from holding iMining Blockchain and or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
OFX Group Ltd vs. iMining Blockchain and
Performance |
| Timeline |
| OFX Group |
| iMining Blockchain and |
OFX Group and IMining Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and IMining Blockchain
The main advantage of trading using opposite OFX Group and IMining Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, IMining Blockchain 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 IMining Blockchain will offset losses from the drop in IMining Blockchain's long position.| OFX Group vs. Juniata Valley Financial | OFX Group vs. NRG Energy | OFX Group vs. Catalyst Bancorp | OFX Group vs. The Hanover Insurance |
| IMining Blockchain vs. Arcane Crypto AB | IMining Blockchain vs. Cypherpunk Holdings | IMining Blockchain vs. Bluesky Digital Assets | IMining Blockchain vs. Cathedra Bitcoin |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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