Correlation Between Rogue Station and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Rogue Station 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 Rogue Station and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogue Station Companies and Bitfarms, you can compare the effects of market volatilities on Rogue Station 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 Rogue Station with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogue Station and Bitfarms.
Diversification Opportunities for Rogue Station and Bitfarms
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rogue and Bitfarms is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Rogue Station Companies and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Rogue Station 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 Rogue Station Companies 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 Rogue Station i.e., Rogue Station and Bitfarms go up and down completely randomly.
Pair Corralation between Rogue Station and Bitfarms
Given the investment horizon of 90 days Rogue Station Companies is expected to generate 34.69 times more return on investment than Bitfarms. However, Rogue Station is 34.69 times more volatile than Bitfarms. It trades about 0.22 of its potential returns per unit of risk. Bitfarms is currently generating about -0.02 per unit of risk. If you would invest 0.40 in Rogue Station Companies on September 12, 2024 and sell it today you would earn a total of 5.87 from holding Rogue Station Companies or generate 1467.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.2% |
| Values | Daily Returns |
Rogue Station Companies vs. Bitfarms
Performance |
| Timeline |
| Rogue Station Companies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Bitfarms |
Rogue Station and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogue Station and Bitfarms
The main advantage of trading using opposite Rogue Station and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogue Station 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.| Rogue Station vs. XTRA Bitcoin | Rogue Station vs. Helix Applications | Rogue Station vs. GreenBank Capital | Rogue Station vs. Cal Bay Intl |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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