Correlation Between Cipher Mining and BlockQuarry Corp

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

By analyzing existing cross correlation between Cipher Mining and BlockQuarry Corp, you can compare the effects of market volatilities on Cipher Mining and BlockQuarry Corp 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 BlockQuarry Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipher Mining and BlockQuarry Corp.

Diversification Opportunities for Cipher Mining and BlockQuarry Corp

0.48

Correlation Coefficient

Cipher Mining  BlockQuarry Corp

Very weak diversification

The 3 months correlation between Cipher and BlockQuarry is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and BlockQuarry Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlockQuarry Corp 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 BlockQuarry Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlockQuarry Corp has no effect on the direction of Cipher Mining i.e., Cipher Mining and BlockQuarry Corp go up and down completely randomly.

Pair Corralation between Cipher Mining and BlockQuarry Corp

Given the investment horizon of 90 days Cipher Mining is expected to under-perform the BlockQuarry Corp. But the stock apears to be less risky and, when comparing its historical volatility, Cipher Mining is 2.18 times less risky than BlockQuarry Corp. The stock trades about -0.11 of its potential returns per unit of risk. The BlockQuarry Corp is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  4.20  in BlockQuarry Corp on December 30, 2024 and sell it today you would lose (2.90) from holding BlockQuarry Corp or give up 69.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cipher Mining  vs.  BlockQuarry Corp

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 April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

BlockQuarry Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days BlockQuarry Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cipher Mining and BlockQuarry Corp

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

The idea behind Cipher Mining and BlockQuarry Corp 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.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.