Correlation Between Sealand Capital and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Sealand Capital and Bitfarms 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 Sealand Capital and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealand Capital Galaxy and Bitfarms, you can compare the effects of market volatilities on Sealand Capital and Bitfarms 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 Sealand Capital with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealand Capital and Bitfarms.
Diversification Opportunities for Sealand Capital and Bitfarms
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sealand and Bitfarms is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sealand Capital Galaxy and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Sealand 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 Sealand Capital Galaxy are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Sealand Capital i.e., Sealand Capital and Bitfarms go up and down completely randomly.
Pair Corralation between Sealand Capital and Bitfarms
Assuming the 90 days trading horizon Sealand Capital Galaxy is expected to under-perform the Bitfarms. But the stock apears to be less risky and, when comparing its historical volatility, Sealand Capital Galaxy is 2.4 times less risky than Bitfarms. The stock trades about -0.09 of its potential returns per unit of risk. The Bitfarms is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Bitfarms on August 31, 2025 and sell it today you would earn a total of 176.00 from holding Bitfarms or generate 131.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Sealand Capital Galaxy vs. Bitfarms
Performance |
| Timeline |
| Sealand Capital Galaxy |
| Bitfarms |
Sealand Capital and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealand Capital and Bitfarms
The main advantage of trading using opposite Sealand Capital and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealand Capital position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Sealand Capital vs. Aptitude Software Group | Sealand Capital vs. Allianz Technology Trust | Sealand Capital vs. Indutrade AB | Sealand Capital vs. Aeorema Communications Plc |
| Bitfarms vs. Nissan Chemical | Bitfarms vs. Logansport Financial Corp | Bitfarms vs. Dicks Sporting Goods | Bitfarms vs. Consolidated Sports Media |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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