Correlation Between Alps Electric and BitMine Immersion

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

Diversification Opportunities for Alps Electric and BitMine Immersion

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Alps and BitMine is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Alps Electric Co and BitMine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitMine Immersion and Alps Electric 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 Alps Electric Co 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 Alps Electric i.e., Alps Electric and BitMine Immersion go up and down completely randomly.

Pair Corralation between Alps Electric and BitMine Immersion

Assuming the 90 days horizon Alps Electric is expected to generate 3342.72 times less return on investment than BitMine Immersion. But when comparing it to its historical volatility, Alps Electric Co is 97.18 times less risky than BitMine Immersion. It trades about 0.01 of its potential returns per unit of risk. BitMine Immersion Technologies, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1.70  in BitMine Immersion Technologies, on April 30, 2025 and sell it today you would earn a total of  3,198  from holding BitMine Immersion Technologies, or generate 188135.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy96.83%
ValuesDaily Returns

Alps Electric Co  vs.  BitMine Immersion Technologies

 Performance 
       Timeline  
Alps Electric 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Alps Electric Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Alps Electric is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
BitMine Immersion 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BitMine Immersion Technologies, are ranked lower than 19 (%) 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.

Alps Electric and BitMine Immersion Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alps Electric and BitMine Immersion

The main advantage of trading using opposite Alps Electric and BitMine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alps Electric 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 Alps Electric Co 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.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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