Correlation Between Bitfarms and Mfs Mid
Can any of the company-specific risk be diversified away by investing in both Bitfarms and Mfs Mid 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 Mfs Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitfarms and Mfs Mid Cap, you can compare the effects of market volatilities on Bitfarms and Mfs Mid 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 Mfs Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and Mfs Mid.
Diversification Opportunities for Bitfarms and Mfs Mid
Weak diversification
The 3 months correlation between Bitfarms and Mfs is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and Mfs Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Mid Cap 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 Mfs Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Mid Cap has no effect on the direction of Bitfarms i.e., Bitfarms and Mfs Mid go up and down completely randomly.
Pair Corralation between Bitfarms and Mfs Mid
Given the investment horizon of 90 days Bitfarms is expected to generate 5.91 times more return on investment than Mfs Mid. However, Bitfarms is 5.91 times more volatile than Mfs Mid Cap. It trades about 0.07 of its potential returns per unit of risk. Mfs Mid Cap is currently generating about 0.16 per unit of risk. If you would invest 102.00 in Bitfarms on May 2, 2025 and sell it today you would earn a total of 18.00 from holding Bitfarms or generate 17.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Bitfarms vs. Mfs Mid Cap
Performance |
Timeline |
Bitfarms |
Mfs Mid Cap |
Bitfarms and Mfs Mid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitfarms and Mfs Mid
The main advantage of trading using opposite Bitfarms and Mfs Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, Mfs Mid 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 Mfs Mid will offset losses from the drop in Mfs Mid's long position.Bitfarms vs. Hut 8 Corp | Bitfarms vs. HIVE Blockchain Technologies | Bitfarms vs. CleanSpark | Bitfarms vs. Bit Digital |
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 Stocks Directory module to find actively traded stocks across global markets.
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