Correlation Between Dynex Capital and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Cipher Mining 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 Dynex Capital and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Cipher Mining, you can compare the effects of market volatilities on Dynex Capital and Cipher Mining 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 Dynex Capital with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Cipher Mining.
Diversification Opportunities for Dynex Capital and Cipher Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dynex and Cipher is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Dynex Capital 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 Dynex Capital are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Dynex Capital i.e., Dynex Capital and Cipher Mining go up and down completely randomly.
Pair Corralation between Dynex Capital and Cipher Mining
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 26.03 times less return on investment than Cipher Mining. But when comparing it to its historical volatility, Dynex Capital is 7.59 times less risky than Cipher Mining. It trades about 0.07 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Cipher Mining on September 6, 2024 and sell it today you would earn a total of 415.00 from holding Cipher Mining or generate 153.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dynex Capital vs. Cipher Mining
Performance |
Timeline |
Dynex Capital |
Cipher Mining |
Dynex Capital and Cipher Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dynex Capital and Cipher Mining
The main advantage of trading using opposite Dynex Capital and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.Dynex Capital vs. Blackstone Mortgage Trust | Dynex Capital vs. Arbor Realty Trust | Dynex Capital vs. Omega Healthcare Investors | Dynex Capital vs. Medical Properties Trust |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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