Correlation Between WM Technology and Bitfarms

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Can any of the company-specific risk be diversified away by investing in both WM Technology 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 WM Technology and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WM Technology and Bitfarms, you can compare the effects of market volatilities on WM Technology 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 WM Technology with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of WM Technology and Bitfarms.

Diversification Opportunities for WM Technology and Bitfarms

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between MAPS and Bitfarms is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WM Technology and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and WM Technology 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 WM Technology 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 WM Technology i.e., WM Technology and Bitfarms go up and down completely randomly.

Pair Corralation between WM Technology and Bitfarms

If you would invest  93.00  in WM Technology on December 29, 2023 and sell it today you would earn a total of  33.00  from holding WM Technology or generate 35.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

WM Technology  vs.  Bitfarms

 Performance 
       Timeline  
WM Technology 

Risk-Adjusted Performance

15 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in WM Technology are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, WM Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.
Bitfarms 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Bitfarms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bitfarms is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

WM Technology and Bitfarms Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WM Technology and Bitfarms

The main advantage of trading using opposite WM Technology and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WM Technology 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.
The idea behind WM Technology and Bitfarms pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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