Correlation Between Lexinfintech Holdings and Cipher Mining

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

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

Diversification Opportunities for Lexinfintech Holdings and Cipher Mining

-0.57

Correlation Coefficient

Lexinfintech Holdings  Cipher Mining

Excellent diversification

The 3 months correlation between Lexinfintech and Cipher is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Lexinfintech Holdings 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 Lexinfintech Holdings 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 Lexinfintech Holdings i.e., Lexinfintech Holdings and Cipher Mining go up and down completely randomly.

Pair Corralation between Lexinfintech Holdings and Cipher Mining

Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to under-perform the Cipher Mining. But the stock apears to be less risky and, when comparing its historical volatility, Lexinfintech Holdings is 3.08 times less risky than Cipher Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Cipher Mining is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  42.00  in Cipher Mining on May 1, 2025 and sell it today you would earn a total of  49.00  from holding Cipher Mining or generate 116.67% return on investment over 90 days.

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

Lexinfintech Holdings  vs.  Cipher Mining

Lexinfintech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lexinfintech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Cipher Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 12 (%) 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 Lexinfintech Holdings and Cipher Mining

The main advantage of trading using opposite Lexinfintech Holdings and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings 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 Lexinfintech Holdings 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.