Correlation Between CleanSpark and Terawulf
Can any of the company-specific risk be diversified away by investing in both CleanSpark and Terawulf 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 Terawulf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanSpark and Terawulf, you can compare the effects of market volatilities on CleanSpark and Terawulf 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 Terawulf. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanSpark and Terawulf.
Diversification Opportunities for CleanSpark and Terawulf
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CleanSpark and Terawulf is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Terawulf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terawulf 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 Terawulf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terawulf has no effect on the direction of CleanSpark i.e., CleanSpark and Terawulf go up and down completely randomly.
Pair Corralation between CleanSpark and Terawulf
Given the investment horizon of 90 days CleanSpark is expected to generate 1.68 times less return on investment than Terawulf. In addition to that, CleanSpark is 1.02 times more volatile than Terawulf. It trades about 0.08 of its total potential returns per unit of risk. Terawulf is currently generating about 0.13 per unit of volatility. If you would invest 167.00 in Terawulf on August 28, 2024 and sell it today you would earn a total of 532.00 from holding Terawulf or generate 318.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CleanSpark vs. Terawulf
Performance |
| Timeline |
| CleanSpark |
| Terawulf |
CleanSpark and Terawulf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanSpark and Terawulf
The main advantage of trading using opposite CleanSpark and Terawulf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanSpark position performs unexpectedly, Terawulf 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 Terawulf will offset losses from the drop in Terawulf's long position.| CleanSpark vs. Scully Royalty | CleanSpark vs. Donnelley Financial Solutions | CleanSpark vs. Heritage Global | CleanSpark vs. Oppenheimer Holdings |
| Terawulf vs. PowerUp Acquisition Corp | Terawulf vs. Aurora Innovation | Terawulf vs. HUMANA INC | Terawulf vs. Aquagold International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |