Correlation Between Widepoint and BIT Mining

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

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

Diversification Opportunities for Widepoint and BIT Mining

-0.37

Correlation Coefficient

Widepoint  BIT Mining

Very good diversification

The 3 months correlation between Widepoint and BIT is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Widepoint C and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and Widepoint 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 Widepoint C 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 Widepoint i.e., Widepoint and BIT Mining go up and down completely randomly.

Pair Corralation between Widepoint and BIT Mining

Considering the 90-day investment horizon Widepoint C is expected to under-perform the BIT Mining. But the stock apears to be less risky and, when comparing its historical volatility, Widepoint C is 3.47 times less risky than BIT Mining. The stock trades about -0.11 of its potential returns per unit of risk. The BIT Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  177.00  in BIT Mining on May 5, 2025 and sell it today you would earn a total of  67.00  from holding BIT Mining or generate 37.85% return on investment over 90 days.

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

Widepoint C  vs.  BIT Mining

Widepoint C

Risk-Adjusted Performance

Very Weak

Over the last 90 days Widepoint C 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 September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

BIT Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BIT Mining are ranked lower than 6 (%) 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 Widepoint and BIT Mining

The main advantage of trading using opposite Widepoint and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Widepoint 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 Widepoint C 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.