Correlation Between Cipher Mining and Terawulf
Can any of the company-specific risk be diversified away by investing in both Cipher Mining and Terawulf 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 Terawulf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cipher Mining and Terawulf, you can compare the effects of market volatilities on Cipher Mining and Terawulf 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 Terawulf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipher Mining and Terawulf.
Diversification Opportunities for Cipher Mining and Terawulf
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cipher and Terawulf is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and Terawulf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terawulf 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 Terawulf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terawulf has no effect on the direction of Cipher Mining i.e., Cipher Mining and Terawulf go up and down completely randomly.
Pair Corralation between Cipher Mining and Terawulf
Given the investment horizon of 90 days Cipher Mining is expected to generate 0.83 times more return on investment than Terawulf. However, Cipher Mining is 1.2 times less risky than Terawulf. It trades about 0.28 of its potential returns per unit of risk. Terawulf is currently generating about 0.22 per unit of risk. If you would invest 668.00 in Cipher Mining on July 23, 2025 and sell it today you would earn a total of 1,323 from holding Cipher Mining or generate 198.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cipher Mining vs. Terawulf
Performance |
| Timeline |
| Cipher Mining |
| Terawulf |
Cipher Mining and Terawulf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cipher Mining and Terawulf
The main advantage of trading using opposite Cipher Mining and Terawulf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipher Mining position performs unexpectedly, Terawulf 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 Terawulf will offset losses from the drop in Terawulf's long position.| Cipher Mining vs. Riot Blockchain | Cipher Mining vs. Marathon Digital Holdings | Cipher Mining vs. Bitmine Immersion Technologies, | Cipher Mining vs. Xp Inc |
| Terawulf vs. Piper Sandler Companies | Terawulf vs. MarketAxess Holdings | Terawulf vs. Hut 8 Corp | Terawulf vs. Cipher Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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