Correlation Between CF Acquisition and Cipher Mining

Can any of the company-specific risk be diversified away by investing in both CF Acquisition and Cipher Mining 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 CF Acquisition and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CF Acquisition VII and Cipher Mining, you can compare the effects of market volatilities on CF Acquisition and Cipher Mining 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 CF Acquisition with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Acquisition and Cipher Mining.

Diversification Opportunities for CF Acquisition and Cipher Mining

0.0

Correlation Coefficient

CF Acquisition  Cipher Mining

Pay attention - limited upside

The 3 months correlation between CFFS and Cipher is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CF Acquisition VII and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and CF Acquisition 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 CF Acquisition VII are associated (or correlated) with Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of CF Acquisition i.e., CF Acquisition and Cipher Mining go up and down completely randomly.

Pair Corralation between CF Acquisition and Cipher Mining

If you would invest (100.00) in CF Acquisition VII on November 28, 2024 and sell it today you would earn a total of  100.00  from holding CF Acquisition VII or generate -100.0% return on investment over 90 days.

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

CF Acquisition VII  vs.  Cipher Mining

CF Acquisition VII

Risk-Adjusted Performance

Very Weak

Over the last 90 days CF Acquisition VII has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CF Acquisition is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Cipher Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cipher Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CF Acquisition and Cipher Mining

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

The idea behind CF Acquisition VII and Cipher Mining 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.