Correlation Between A Schulman and Bitmine Immersion

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

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

Diversification Opportunities for A Schulman and Bitmine Immersion

-0.41

Correlation Coefficient

A Schulman  Bitmine Immersion

Very good diversification

The 3 months correlation between SLMNP and Bitmine is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding A Schulman and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and A Schulman 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 A Schulman are associated (or correlated) with Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of A Schulman i.e., A Schulman and Bitmine Immersion go up and down completely randomly.

Pair Corralation between A Schulman and Bitmine Immersion

Assuming the 90 days horizon A Schulman is expected to generate 7.74 times less return on investment than Bitmine Immersion. But when comparing it to its historical volatility, A Schulman is 5.99 times less risky than Bitmine Immersion. It trades about 0.05 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  63.00  in Bitmine Immersion Technologies on September 17, 2024 and sell it today you would lose (18.00) from holding Bitmine Immersion Technologies or give up 28.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	67.35%
Values	Daily Returns

A Schulman  vs.  Bitmine Immersion Technologies

A Schulman

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in A Schulman are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, A Schulman is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Bitmine Immersion

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bitmine Immersion Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bitmine Immersion reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with A Schulman and Bitmine Immersion

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

The idea behind A Schulman and Bitmine Immersion Technologies 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.