Correlation Between CleanSpark and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both CleanSpark and Soluna Holdings 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 Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanSpark and Soluna Holdings, you can compare the effects of market volatilities on CleanSpark and Soluna Holdings 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 Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanSpark and Soluna Holdings.
Diversification Opportunities for CleanSpark and Soluna Holdings
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CleanSpark and Soluna is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Soluna Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings 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 Soluna Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soluna Holdings has no effect on the direction of CleanSpark i.e., CleanSpark and Soluna Holdings go up and down completely randomly.
Pair Corralation between CleanSpark and Soluna Holdings
Given the investment horizon of 90 days CleanSpark is expected to generate 0.52 times more return on investment than Soluna Holdings. However, CleanSpark is 1.92 times less risky than Soluna Holdings. It trades about 0.05 of its potential returns per unit of risk. Soluna Holdings is currently generating about -0.09 per unit of risk. If you would invest 1,009 in CleanSpark on November 9, 2024 and sell it today you would earn a total of 29.00 from holding CleanSpark or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
CleanSpark vs. Soluna Holdings
Performance |
| Timeline |
| CleanSpark |
| Soluna Holdings |
CleanSpark and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanSpark and Soluna Holdings
The main advantage of trading using opposite CleanSpark and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanSpark position performs unexpectedly, Soluna Holdings 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 Soluna Holdings will offset losses from the drop in Soluna Holdings' long position.| CleanSpark vs. Hut 8 Corp | CleanSpark vs. HIVE Blockchain Technologies | CleanSpark vs. Bit Digital | CleanSpark vs. Terawulf |
| Soluna Holdings vs. CLPS Inc | Soluna Holdings vs. Xalles Holdings | Soluna Holdings vs. SEATech Ventures Corp | Soluna Holdings vs. ASGN Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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