Correlation Between Greenidge Generation and CleanSpark
Can any of the company-specific risk be diversified away by investing in both Greenidge Generation 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 Greenidge Generation and CleanSpark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenidge Generation Holdings and CleanSpark, you can compare the effects of market volatilities on Greenidge Generation 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 Greenidge Generation with a short position of CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenidge Generation and CleanSpark.
Diversification Opportunities for Greenidge Generation and CleanSpark
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Greenidge and CleanSpark is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Greenidge Generation Holdings and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Greenidge Generation 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 Greenidge Generation 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 Greenidge Generation i.e., Greenidge Generation and CleanSpark go up and down completely randomly.
Pair Corralation between Greenidge Generation and CleanSpark
Given the investment horizon of 90 days Greenidge Generation Holdings is expected to under-perform the CleanSpark. But the stock apears to be less risky and, when comparing its historical volatility, Greenidge Generation Holdings is 1.14 times less risky than CleanSpark. The stock trades about -0.02 of its potential returns per unit of risk. The CleanSpark is currently generating about 0.04 of returns per unit of risk over similar time horizon. 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 |
Greenidge Generation Holdings vs. CleanSpark
Performance |
| Timeline |
| Greenidge Generation |
| CleanSpark |
Greenidge Generation and CleanSpark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenidge Generation and CleanSpark
The main advantage of trading using opposite Greenidge Generation and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenidge Generation 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.| Greenidge Generation vs. Cipher Mining | Greenidge Generation vs. Terawulf | Greenidge Generation vs. Iris Energy | Greenidge Generation vs. Argo Blockchain PLC |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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