Correlation Between CleanSpark and Advantest
Can any of the company-specific risk be diversified away by investing in both CleanSpark and Advantest 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 Advantest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanSpark and Advantest, you can compare the effects of market volatilities on CleanSpark and Advantest 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 Advantest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanSpark and Advantest.
Diversification Opportunities for CleanSpark and Advantest
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CleanSpark and Advantest is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Advantest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantest 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 Advantest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantest has no effect on the direction of CleanSpark i.e., CleanSpark and Advantest go up and down completely randomly.
Pair Corralation between CleanSpark and Advantest
Given the investment horizon of 90 days CleanSpark is expected to generate 1.07 times less return on investment than Advantest. In addition to that, CleanSpark is 2.82 times more volatile than Advantest. It trades about 0.09 of its total potential returns per unit of risk. Advantest is currently generating about 0.28 per unit of volatility. If you would invest 5,104 in Advantest on August 24, 2024 and sell it today you would earn a total of 1,146 from holding Advantest or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CleanSpark vs. Advantest
Performance |
| Timeline |
| CleanSpark |
| Advantest |
CleanSpark and Advantest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanSpark and Advantest
The main advantage of trading using opposite CleanSpark and Advantest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanSpark position performs unexpectedly, Advantest 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 Advantest will offset losses from the drop in Advantest's long position.| CleanSpark vs. Hut 8 Corp | CleanSpark vs. HIVE Blockchain Technologies | CleanSpark vs. Bit Digital | CleanSpark vs. Terawulf |
| Advantest vs. Tokyo Electron | Advantest vs. Ultra Clean Holdings | Advantest vs. Applied Materials | Advantest vs. Sumco Corp ADR |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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