Correlation Between Terawulf and OneMain Holdings
Can any of the company-specific risk be diversified away by investing in both Terawulf and OneMain Holdings 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 Terawulf and OneMain Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terawulf and OneMain Holdings, you can compare the effects of market volatilities on Terawulf and OneMain Holdings 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 Terawulf with a short position of OneMain Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terawulf and OneMain Holdings.
Diversification Opportunities for Terawulf and OneMain Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Terawulf and OneMain is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Terawulf and OneMain Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMain Holdings and Terawulf 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 Terawulf are associated (or correlated) with OneMain Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMain Holdings has no effect on the direction of Terawulf i.e., Terawulf and OneMain Holdings go up and down completely randomly.
Pair Corralation between Terawulf and OneMain Holdings
Given the investment horizon of 90 days Terawulf is expected to generate 3.92 times more return on investment than OneMain Holdings. However, Terawulf is 3.92 times more volatile than OneMain Holdings. It trades about 0.07 of its potential returns per unit of risk. OneMain Holdings is currently generating about 0.07 per unit of risk. If you would invest 116.00 in Terawulf on November 27, 2024 and sell it today you would earn a total of 292.00 from holding Terawulf or generate 251.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terawulf vs. OneMain Holdings
Performance |
| Timeline |
| Terawulf |
| OneMain Holdings |
Terawulf and OneMain Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terawulf and OneMain Holdings
The main advantage of trading using opposite Terawulf and OneMain Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terawulf position performs unexpectedly, OneMain Holdings 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 OneMain Holdings will offset losses from the drop in OneMain Holdings' long position.| Terawulf vs. Iris Energy | Terawulf vs. Stronghold Digital Mining | Terawulf vs. Argo Blockchain PLC | Terawulf vs. Bitfarms |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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