Correlation Between Canadian Imperial and Cipher Mining

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

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

Diversification Opportunities for Canadian Imperial and Cipher Mining

0.92

Correlation Coefficient

Canadian Imperial  Cipher Mining

Almost no diversification

The 3 months correlation between Canadian and Cipher is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Canadian Imperial 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 Canadian Imperial Bank 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 Canadian Imperial i.e., Canadian Imperial and Cipher Mining go up and down completely randomly.

Pair Corralation between Canadian Imperial and Cipher Mining

Allowing for the 90-day total investment horizon Canadian Imperial is expected to generate 18.35 times less return on investment than Cipher Mining. But when comparing it to its historical volatility, Canadian Imperial Bank is 16.17 times less risky than Cipher Mining. It trades about 0.41 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest  74.00  in Cipher Mining on July 8, 2025 and sell it today you would earn a total of  535.00  from holding Cipher Mining or generate 722.97% return on investment over 90 days.

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

Canadian Imperial Bank  vs.  Cipher Mining

Canadian Imperial Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Imperial Bank are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Canadian Imperial displayed solid returns over the last few months and may actually be approaching a breakup point.

Cipher Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Cipher Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Canadian Imperial and Cipher Mining

The main advantage of trading using opposite Canadian Imperial and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial 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 Canadian Imperial Bank 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 Commodity Directory module to find actively traded commodities issued by global exchanges.