Correlation Between Cipher Mining and IsoRay

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

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

Diversification Opportunities for Cipher Mining and IsoRay

-0.49

Correlation Coefficient

Cipher Mining  IsoRay

Very good diversification

The 3 months correlation between Cipher and IsoRay is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and IsoRay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IsoRay Inc and Cipher Mining 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 Cipher Mining are associated (or correlated) with IsoRay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IsoRay Inc has no effect on the direction of Cipher Mining i.e., Cipher Mining and IsoRay go up and down completely randomly.

Pair Corralation between Cipher Mining and IsoRay

If you would invest  387.00  in Cipher Mining on September 30, 2024 and sell it today you would earn a total of  99.00  from holding Cipher Mining or generate 25.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Cipher Mining  vs.  IsoRay Inc

Cipher Mining

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Cipher Mining reported solid returns over the last few months and may actually be approaching a breakup point.

IsoRay Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IsoRay Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IsoRay is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cipher Mining and IsoRay

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

The idea behind Cipher Mining and IsoRay 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 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.