Correlation Between Riot Blockchain and Cipher Mining

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

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

Diversification Opportunities for Riot Blockchain and Cipher Mining

0.3

Correlation Coefficient

Riot Blockchain  Cipher Mining

Weak diversification

The 3 months correlation between Riot and Cipher is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Riot Blockchain and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining and Riot Blockchain 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 Riot Blockchain 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 Riot Blockchain i.e., Riot Blockchain and Cipher Mining go up and down completely randomly.

Pair Corralation between Riot Blockchain and Cipher Mining

Given the investment horizon of 90 days Riot Blockchain is expected to generate 3.4 times less return on investment than Cipher Mining. But when comparing it to its historical volatility, Riot Blockchain is 1.46 times less risky than Cipher Mining. It trades about 0.08 of its potential returns per unit of risk. Cipher Mining is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  379.00  in Cipher Mining on September 18, 2025 and sell it today you would earn a total of  1,120  from holding Cipher Mining or generate 295.51% return on investment over 90 days.

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

Riot Blockchain  vs.  Cipher Mining

Riot Blockchain

Risk-Adjusted Performance

Weakest

Over the last 90 days Riot Blockchain 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 basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Cipher Mining

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Cipher Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Riot Blockchain and Cipher Mining

The main advantage of trading using opposite Riot Blockchain and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Riot Blockchain 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 Riot Blockchain 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.