Correlation Between Ares Capital and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Ares Capital 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 Ares Capital and Cipher Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ares Capital and Cipher Mining, you can compare the effects of market volatilities on Ares Capital 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 Ares Capital with a short position of Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Capital and Cipher Mining.
Diversification Opportunities for Ares Capital and Cipher Mining
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ares and Cipher is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ares Capital and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Ares Capital 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 Ares Capital 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 Ares Capital i.e., Ares Capital and Cipher Mining go up and down completely randomly.
Pair Corralation between Ares Capital and Cipher Mining
Given the investment horizon of 90 days Ares Capital is expected to under-perform the Cipher Mining. But the stock apears to be less risky and, when comparing its historical volatility, Ares Capital is 5.3 times less risky than Cipher Mining. The stock trades about -0.27 of its potential returns per unit of risk. The Cipher Mining is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,185 in Cipher Mining on July 20, 2025 and sell it today you would earn a total of 691.00 from holding Cipher Mining or generate 58.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ares Capital vs. Cipher Mining
Performance |
Timeline |
Ares Capital |
Cipher Mining |
Ares Capital and Cipher Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ares Capital and Cipher Mining
The main advantage of trading using opposite Ares Capital and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ares Capital 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.Ares Capital vs. Triplepoint Venture Growth | Ares Capital vs. Sixth Street Specialty | Ares Capital vs. Main Street Capital | Ares Capital vs. Capital Southwest |
Cipher Mining vs. Argo Blockchain PLC | Cipher Mining vs. Bitfarms | Cipher Mining vs. IREN | Cipher Mining vs. Terawulf |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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