Correlation Between Ready Capital and Bitfarms

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

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

Diversification Opportunities for Ready Capital and Bitfarms

-0.7

Correlation Coefficient

Ready Capital  Bitfarms

Excellent diversification

The 3 months correlation between Ready and Bitfarms is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ready Capital Corp and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Ready Capital 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 Ready Capital Corp are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Ready Capital i.e., Ready Capital and Bitfarms go up and down completely randomly.

Pair Corralation between Ready Capital and Bitfarms

Allowing for the 90-day total investment horizon Ready Capital Corp is expected to under-perform the Bitfarms. But the stock apears to be less risky and, when comparing its historical volatility, Ready Capital Corp is 3.39 times less risky than Bitfarms. The stock trades about -0.19 of its potential returns per unit of risk. The Bitfarms is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  128.00  in Bitfarms on July 26, 2025 and sell it today you would earn a total of  333.00  from holding Bitfarms or generate 260.16% return on investment over 90 days.

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

Ready Capital Corp  vs.  Bitfarms

Ready Capital Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Ready Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bitfarms

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfarms are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bitfarms reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ready Capital and Bitfarms

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

The idea behind Ready Capital Corp and Bitfarms 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.