Correlation Between Allied Motion and Bitmine Immersion

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

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

Diversification Opportunities for Allied Motion and Bitmine Immersion

0.0

Correlation Coefficient

Allied Motion  Bitmine Immersion

Pay attention - limited upside

The 3 months correlation between Allied and Bitmine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allied Motion Technologies and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Allied Motion 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 Allied Motion Technologies 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 Allied Motion i.e., Allied Motion and Bitmine Immersion go up and down completely randomly.

Pair Corralation between Allied Motion and Bitmine Immersion

If you would invest  36.00  in Bitmine Immersion Technologies on December 3, 2024 and sell it today you would lose (8.00) from holding Bitmine Immersion Technologies or give up 22.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Allied Motion Technologies  vs.  Bitmine Immersion Technologies

Allied Motion Techno

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allied Motion Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Allied Motion is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Bitmine Immersion

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitmine Immersion Technologies are ranked lower than 2 (%) 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 Allied Motion and Bitmine Immersion

The main advantage of trading using opposite Allied Motion and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Motion 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 Allied Motion Technologies 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..