Correlation Between DeFi Technologies and CleanSpark
Can any of the company-specific risk be diversified away by investing in both DeFi Technologies and CleanSpark 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 DeFi Technologies and CleanSpark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DeFi Technologies and CleanSpark, you can compare the effects of market volatilities on DeFi Technologies and CleanSpark 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 DeFi Technologies with a short position of CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of DeFi Technologies and CleanSpark.
Diversification Opportunities for DeFi Technologies and CleanSpark
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DeFi and CleanSpark is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding DeFi Technologies and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and DeFi Technologies 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 DeFi Technologies are associated (or correlated) with CleanSpark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanSpark has no effect on the direction of DeFi Technologies i.e., DeFi Technologies and CleanSpark go up and down completely randomly.
Pair Corralation between DeFi Technologies and CleanSpark
Assuming the 90 days horizon DeFi Technologies is expected to generate 0.69 times more return on investment than CleanSpark. However, DeFi Technologies is 1.44 times less risky than CleanSpark. It trades about 0.15 of its potential returns per unit of risk. CleanSpark is currently generating about 0.09 per unit of risk. If you would invest 190.00 in DeFi Technologies on August 30, 2024 and sell it today you would earn a total of 38.00 from holding DeFi Technologies or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DeFi Technologies vs. CleanSpark
Performance |
| Timeline |
| DeFi Technologies |
| CleanSpark |
DeFi Technologies and CleanSpark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DeFi Technologies and CleanSpark
The main advantage of trading using opposite DeFi Technologies and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DeFi Technologies position performs unexpectedly, CleanSpark 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 CleanSpark will offset losses from the drop in CleanSpark's long position.| DeFi Technologies vs. Argo Blockchain PLC | DeFi Technologies vs. DigiMax Global | DeFi Technologies vs. Galaxy Digital Holdings | DeFi Technologies vs. BIG Blockchain Intelligence |
| CleanSpark vs. Hut 8 Corp | CleanSpark vs. HIVE Blockchain Technologies | CleanSpark vs. Bit Digital | CleanSpark vs. Terawulf |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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