Correlation Between Bitfarms and Amg Managers

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

By analyzing existing cross correlation between Bitfarms and Amg Managers Fairpointe, you can compare the effects of market volatilities on Bitfarms and Amg Managers 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 Bitfarms with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Amg Managers.

Diversification Opportunities for Bitfarms and Amg Managers

0.4

Correlation Coefficient

Bitfarms  Amg Managers

Very weak diversification

The 3 months correlation between Bitfarms and Amg is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe and Bitfarms 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 Bitfarms are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Fairpointe has no effect on the direction of Bitfarms i.e., Bitfarms and Amg Managers go up and down completely randomly.

Pair Corralation between Bitfarms and Amg Managers

Given the investment horizon of 90 days Bitfarms is expected to generate 5.77 times more return on investment than Amg Managers. However, Bitfarms is 5.77 times more volatile than Amg Managers Fairpointe. It trades about 0.08 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.11 per unit of risk. If you would invest  97.00  in Bitfarms on May 5, 2025 and sell it today you would earn a total of  19.00  from holding Bitfarms or generate 19.59% return on investment over 90 days.

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

Bitfarms  vs.  Amg Managers Fairpointe

Bitfarms

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfarms are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Bitfarms reported solid returns over the last few months and may actually be approaching a breakup point.

Amg Managers Fairpointe

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amg Managers Fairpointe are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Amg Managers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bitfarms and Amg Managers

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

The idea behind Bitfarms and Amg Managers Fairpointe 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.