Correlation Between DXC Technology and BIT Mining

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

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

Diversification Opportunities for DXC Technology and BIT Mining

-0.38

Correlation Coefficient

DXC Technology  BIT Mining

Very good diversification

The 3 months correlation between DXC and BIT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and DXC Technology 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 DXC Technology Co are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of DXC Technology i.e., DXC Technology and BIT Mining go up and down completely randomly.

Pair Corralation between DXC Technology and BIT Mining

Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the BIT Mining. But the stock apears to be less risky and, when comparing its historical volatility, DXC Technology Co is 8.48 times less risky than BIT Mining. The stock trades about -0.05 of its potential returns per unit of risk. The BIT Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  200.00  in BIT Mining on May 16, 2025 and sell it today you would earn a total of  182.00  from holding BIT Mining or generate 91.0% return on investment over 90 days.

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

DXC Technology Co  vs.  BIT Mining

DXC Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days DXC Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

BIT Mining

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BIT Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, BIT Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DXC Technology and BIT Mining

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

The idea behind DXC Technology Co and BIT 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.