Correlation Between Highest Performances and Cipher Mining

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

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

Diversification Opportunities for Highest Performances and Cipher Mining

-0.61

Correlation Coefficient

Highest Performances  Cipher Mining

Excellent diversification

The 3 months correlation between Highest and Cipher is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Highest Performances Holdings and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Highest Performances 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 Highest Performances Holdings 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 Highest Performances i.e., Highest Performances and Cipher Mining go up and down completely randomly.

Pair Corralation between Highest Performances and Cipher Mining

Considering the 90-day investment horizon Highest Performances Holdings is expected to under-perform the Cipher Mining. But the stock apears to be less risky and, when comparing its historical volatility, Highest Performances Holdings is 1.24 times less risky than Cipher Mining. The stock trades about -0.17 of its potential returns per unit of risk. The Cipher Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  396.00  in Cipher Mining on October 8, 2024 and sell it today you would earn a total of  161.00  from holding Cipher Mining or generate 40.66% return on investment over 90 days.

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

Highest Performances Holdings  vs.  Cipher Mining

Highest Performances

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Highest Performances Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cipher Mining

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Cipher Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Highest Performances and Cipher Mining

The main advantage of trading using opposite Highest Performances and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highest Performances 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 Highest Performances Holdings 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.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.