Correlation Between Bitmine Immersion and Ouster

Can any of the company-specific risk be diversified away by investing in both Bitmine Immersion and Ouster 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 Bitmine Immersion and Ouster into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitmine Immersion Technologies and Ouster Inc, you can compare the effects of market volatilities on Bitmine Immersion and Ouster 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 Bitmine Immersion with a short position of Ouster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitmine Immersion and Ouster.

Diversification Opportunities for Bitmine Immersion and Ouster

-0.09

Correlation Coefficient

Bitmine Immersion  Ouster

Good diversification

The 3 months correlation between Bitmine and Ouster is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and Ouster Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouster Inc and Bitmine Immersion 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 Bitmine Immersion Technologies are associated (or correlated) with Ouster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouster Inc has no effect on the direction of Bitmine Immersion i.e., Bitmine Immersion and Ouster go up and down completely randomly.

Pair Corralation between Bitmine Immersion and Ouster

Given the investment horizon of 90 days Bitmine Immersion Technologies is expected to generate 3.26 times more return on investment than Ouster. However, Bitmine Immersion is 3.26 times more volatile than Ouster Inc. It trades about 0.11 of its potential returns per unit of risk. Ouster Inc is currently generating about 0.18 per unit of risk. If you would invest  55.00  in Bitmine Immersion Technologies on September 19, 2024 and sell it today you would lose (1.00) from holding Bitmine Immersion Technologies or give up 1.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Bitmine Immersion Technologies  vs.  Ouster Inc

Bitmine Immersion

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bitmine Immersion Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Bitmine Immersion reported solid returns over the last few months and may actually be approaching a breakup point.

Ouster Inc

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ouster Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Ouster unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitmine Immersion and Ouster

The main advantage of trading using opposite Bitmine Immersion and Ouster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion position performs unexpectedly, Ouster 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 Ouster will offset losses from the drop in Ouster's long position.

The idea behind Bitmine Immersion Technologies and Ouster Inc 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.