Correlation Between Cipher Mining and Coin Citadel

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

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

Diversification Opportunities for Cipher Mining and Coin Citadel

-0.1

Correlation Coefficient

Cipher Mining  Coin Citadel

Good diversification

The 3 months correlation between Cipher and Coin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel and Cipher Mining 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 Cipher Mining are associated (or correlated) with Coin Citadel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin Citadel has no effect on the direction of Cipher Mining i.e., Cipher Mining and Coin Citadel go up and down completely randomly.

Pair Corralation between Cipher Mining and Coin Citadel

Given the investment horizon of 90 days Cipher Mining is expected to generate 0.43 times more return on investment than Coin Citadel. However, Cipher Mining is 2.35 times less risky than Coin Citadel. It trades about 0.21 of its potential returns per unit of risk. Coin Citadel is currently generating about 0.06 per unit of risk. If you would invest  285.00  in Cipher Mining on April 30, 2025 and sell it today you would earn a total of  283.00  from holding Cipher Mining or generate 99.3% return on investment over 90 days.

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

Cipher Mining  vs.  Coin Citadel

Cipher Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 16 (%) 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.

Coin Citadel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Coin Citadel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cipher Mining and Coin Citadel

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

The idea behind Cipher Mining and Coin Citadel 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.