Correlation Between CleanSpark and Greenidge Generation
Can any of the company-specific risk be diversified away by investing in both CleanSpark and Greenidge Generation 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 Greenidge Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanSpark and Greenidge Generation Holdings, you can compare the effects of market volatilities on CleanSpark and Greenidge Generation 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 Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanSpark and Greenidge Generation.
Diversification Opportunities for CleanSpark and Greenidge Generation
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CleanSpark and Greenidge is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation 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 Greenidge Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenidge Generation has no effect on the direction of CleanSpark i.e., CleanSpark and Greenidge Generation go up and down completely randomly.
Pair Corralation between CleanSpark and Greenidge Generation
Given the investment horizon of 90 days CleanSpark is expected to generate 1.14 times more return on investment than Greenidge Generation. However, CleanSpark is 1.14 times more volatile than Greenidge Generation Holdings. It trades about 0.04 of its potential returns per unit of risk. Greenidge Generation Holdings is currently generating about -0.02 per unit of risk. If you would invest 931.00 in CleanSpark on November 3, 2024 and sell it today you would earn a total of 113.00 from holding CleanSpark or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
CleanSpark vs. Greenidge Generation Holdings
Performance |
| Timeline |
| CleanSpark |
| Greenidge Generation |
CleanSpark and Greenidge Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanSpark and Greenidge Generation
The main advantage of trading using opposite CleanSpark and Greenidge Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanSpark position performs unexpectedly, Greenidge Generation 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 Greenidge Generation will offset losses from the drop in Greenidge Generation's long position.| CleanSpark vs. Hut 8 Corp | CleanSpark vs. HIVE Blockchain Technologies | CleanSpark vs. Bit Digital | CleanSpark vs. Terawulf |
| Greenidge Generation vs. Cipher Mining | Greenidge Generation vs. Terawulf | Greenidge Generation vs. Iris Energy | Greenidge Generation vs. Argo Blockchain PLC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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