Correlation Between Helix Applications and Cipher Mining

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

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

Diversification Opportunities for Helix Applications and Cipher Mining

-0.15

Correlation Coefficient

Helix Applications  Cipher Mining

Good diversification

The 3 months correlation between Helix and Cipher is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Helix Applications and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Helix Applications 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 Helix Applications 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 Helix Applications i.e., Helix Applications and Cipher Mining go up and down completely randomly.

Pair Corralation between Helix Applications and Cipher Mining

Assuming the 90 days horizon Helix Applications is expected to generate 157.33 times less return on investment than Cipher Mining. But when comparing it to its historical volatility, Helix Applications is 5.19 times less risky than Cipher Mining. It trades about 0.01 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  298.00  in Cipher Mining on May 9, 2025 and sell it today you would earn a total of  223.00  from holding Cipher Mining or generate 74.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Helix Applications  vs.  Cipher Mining

Helix Applications

Risk-Adjusted Performance

Weakest

Over the last 90 days Helix Applications has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Helix Applications is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cipher Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical and fundamental indicators, Cipher Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Helix Applications and Cipher Mining

The main advantage of trading using opposite Helix Applications and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix Applications 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.

The idea behind Helix Applications and Cipher 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.