Correlation Between Sabio Holdings and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Sabio Holdings 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 Sabio Holdings and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabio Holdings and Bitfarms, you can compare the effects of market volatilities on Sabio Holdings 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 Sabio Holdings with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabio Holdings and Bitfarms.
Diversification Opportunities for Sabio Holdings and Bitfarms
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabio and Bitfarms is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sabio Holdings and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Sabio 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 Sabio Holdings 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 Sabio Holdings i.e., Sabio Holdings and Bitfarms go up and down completely randomly.
Pair Corralation between Sabio Holdings and Bitfarms
Assuming the 90 days trading horizon Sabio Holdings is expected to generate 0.99 times more return on investment than Bitfarms. However, Sabio Holdings is 1.01 times less risky than Bitfarms. It trades about -0.03 of its potential returns per unit of risk. Bitfarms is currently generating about -0.12 per unit of risk. If you would invest 66.00 in Sabio Holdings on December 24, 2024 and sell it today you would lose (4.00) from holding Sabio Holdings or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabio Holdings vs. Bitfarms
Performance |
| Timeline |
| Sabio Holdings |
| Bitfarms |
Sabio Holdings and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabio Holdings and Bitfarms
The main advantage of trading using opposite Sabio Holdings and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabio Holdings 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.| Sabio Holdings vs. Data Communications Management | Sabio Holdings vs. Leons Furniture Limited | Sabio Holdings vs. Maple Peak Investments | Sabio Holdings vs. Economic Investment Trust |
| Bitfarms vs. Hut 8 Mining | Bitfarms vs. Bitfarms | Bitfarms vs. Dmg Blockchain Solutions | Bitfarms vs. Galaxy Digital Holdings |
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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