Correlation Between Sphere 3D and Gryphon Digital

Can any of the company-specific risk be diversified away by investing in both Sphere 3D and Gryphon Digital 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 Sphere 3D and Gryphon Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sphere 3D Corp and Gryphon Digital Mining, you can compare the effects of market volatilities on Sphere 3D and Gryphon Digital 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 Sphere 3D with a short position of Gryphon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere 3D and Gryphon Digital.

Diversification Opportunities for Sphere 3D and Gryphon Digital

0.47

Correlation Coefficient

Sphere 3D  Gryphon Digital

Very weak diversification

The 3 months correlation between Sphere and Gryphon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sphere 3D Corp and Gryphon Digital Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gryphon Digital Mining and Sphere 3D 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 Sphere 3D Corp are associated (or correlated) with Gryphon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gryphon Digital Mining has no effect on the direction of Sphere 3D i.e., Sphere 3D and Gryphon Digital go up and down completely randomly.

Pair Corralation between Sphere 3D and Gryphon Digital

Considering the 90-day investment horizon Sphere 3D is expected to generate 5.06 times less return on investment than Gryphon Digital. But when comparing it to its historical volatility, Sphere 3D Corp is 1.5 times less risky than Gryphon Digital. It trades about 0.0 of its potential returns per unit of risk. Gryphon Digital Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  940.00  in Gryphon Digital Mining on May 6, 2025 and sell it today you would lose (819.00) from holding Gryphon Digital Mining or give up 87.13% of portfolio value over 90 days.

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

Sphere 3D Corp  vs.  Gryphon Digital Mining

Sphere 3D Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sphere 3D Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Gryphon Digital Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gryphon Digital Mining are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Gryphon Digital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sphere 3D and Gryphon Digital

The main advantage of trading using opposite Sphere 3D and Gryphon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere 3D position performs unexpectedly, Gryphon Digital 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 Gryphon Digital will offset losses from the drop in Gryphon Digital's long position.

The idea behind Sphere 3D Corp and Gryphon Digital 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.