Correlation Between Cipher Mining and Stepstone

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

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

Diversification Opportunities for Cipher Mining and Stepstone

0.11

Correlation Coefficient

Cipher Mining  Stepstone

Average diversification

The 3 months correlation between Cipher and Stepstone is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone Group and Cipher Mining 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 Cipher Mining are associated (or correlated) with Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of Cipher Mining i.e., Cipher Mining and Stepstone go up and down completely randomly.

Pair Corralation between Cipher Mining and Stepstone

Given the investment horizon of 90 days Cipher Mining is expected to generate 3.48 times more return on investment than Stepstone. However, Cipher Mining is 3.48 times more volatile than Stepstone Group. It trades about 0.2 of its potential returns per unit of risk. Stepstone Group is currently generating about 0.0 per unit of risk. If you would invest  712.00  in Cipher Mining on August 26, 2025 and sell it today you would earn a total of  959.00  from holding Cipher Mining or generate 134.69% return on investment over 90 days.

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

Cipher Mining  vs.  Stepstone Group

Cipher Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Mining are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Cipher Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Stepstone Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Stepstone Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Stepstone is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cipher Mining and Stepstone

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

The idea behind Cipher Mining and Stepstone Group 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.