Correlation Between Forge Global and CleanSpark
Can any of the company-specific risk be diversified away by investing in both Forge Global 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 Forge Global and CleanSpark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forge Global Holdings and CleanSpark, you can compare the effects of market volatilities on Forge Global 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 Forge Global with a short position of CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forge Global and CleanSpark.
Diversification Opportunities for Forge Global and CleanSpark
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Forge and CleanSpark is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Forge Global Holdings and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Forge Global 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 Forge Global Holdings 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 Forge Global i.e., Forge Global and CleanSpark go up and down completely randomly.
Pair Corralation between Forge Global and CleanSpark
Given the investment horizon of 90 days Forge Global Holdings is expected to generate 1.6 times more return on investment than CleanSpark. However, Forge Global is 1.6 times more volatile than CleanSpark. It trades about 0.05 of its potential returns per unit of risk. CleanSpark is currently generating about 0.0 per unit of risk. If you would invest 893.00 in Forge Global Holdings on January 18, 2025 and sell it today you would lose (24.00) from holding Forge Global Holdings or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forge Global Holdings vs. CleanSpark
Performance |
| Timeline |
| Forge Global Holdings |
| CleanSpark |
Forge Global and CleanSpark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forge Global and CleanSpark
The main advantage of trading using opposite Forge Global and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forge Global 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.| Forge Global vs. Clearwater Analytics Holdings | Forge Global vs. Expensify | Forge Global vs. CS Disco LLC | Forge Global vs. Amplitude |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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