Correlation Between CleanSpark and Clearwater Analytics

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

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

Diversification Opportunities for CleanSpark and Clearwater Analytics

0.83

Correlation Coefficient

CleanSpark  Clearwater Analytics

Very poor diversification

The 3 months correlation between CleanSpark and Clearwater is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Clearwater Analytics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Analytics and CleanSpark 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 CleanSpark are associated (or correlated) with Clearwater Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Analytics has no effect on the direction of CleanSpark i.e., CleanSpark and Clearwater Analytics go up and down completely randomly.

Pair Corralation between CleanSpark and Clearwater Analytics

Given the investment horizon of 90 days CleanSpark is expected to generate 2.92 times more return on investment than Clearwater Analytics. However, CleanSpark is 2.92 times more volatile than Clearwater Analytics Holdings. It trades about 0.05 of its potential returns per unit of risk. Clearwater Analytics Holdings is currently generating about 0.08 per unit of risk. If you would invest  1,013  in CleanSpark on September 27, 2024 and sell it today you would earn a total of  53.00  from holding CleanSpark or generate 5.23% return on investment over 90 days.

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

CleanSpark  vs.  Clearwater Analytics Holdings

CleanSpark

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, CleanSpark disclosed solid returns over the last few months and may actually be approaching a breakup point.

Clearwater Analytics

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Clearwater Analytics Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Clearwater Analytics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CleanSpark and Clearwater Analytics

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

The idea behind CleanSpark and Clearwater Analytics Holdings 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.

Check out your portfolio center.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.