Correlation Between Bitfarms and T Rowe

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

By analyzing existing cross correlation between Bitfarms and T Rowe Price, you can compare the effects of market volatilities on Bitfarms and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitfarms and T Rowe.

Diversification Opportunities for Bitfarms and T Rowe

0.76

Correlation Coefficient

Bitfarms  T Rowe

Poor diversification

The 3 months correlation between Bitfarms and RPGIX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bitfarms and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Bitfarms i.e., Bitfarms and T Rowe go up and down completely randomly.

Pair Corralation between Bitfarms and T Rowe

Given the investment horizon of 90 days Bitfarms is expected to generate 5.88 times more return on investment than T Rowe. However, Bitfarms is 5.88 times more volatile than T Rowe Price. It trades about 0.1 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.15 per unit of risk. If you would invest  98.00  in Bitfarms on May 28, 2025 and sell it today you would earn a total of  26.00  from holding Bitfarms or generate 26.53% return on investment over 90 days.

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

Bitfarms  vs.  T Rowe Price

Bitfarms

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfarms are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Bitfarms reported solid returns over the last few months and may actually be approaching a breakup point.

T Rowe Price

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, T Rowe may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bitfarms and T Rowe

The main advantage of trading using opposite Bitfarms and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitfarms position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind Bitfarms and T Rowe Price 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 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..