Correlation Between Netcapital and CleanSpark
Can any of the company-specific risk be diversified away by investing in both Netcapital 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 Netcapital and CleanSpark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netcapital and CleanSpark, you can compare the effects of market volatilities on Netcapital 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 Netcapital with a short position of CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcapital and CleanSpark.
Diversification Opportunities for Netcapital and CleanSpark
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Netcapital and CleanSpark is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Netcapital and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Netcapital 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 Netcapital 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 Netcapital i.e., Netcapital and CleanSpark go up and down completely randomly.
Pair Corralation between Netcapital and CleanSpark
Given the investment horizon of 90 days Netcapital is expected to generate 1.23 times less return on investment than CleanSpark. But when comparing it to its historical volatility, Netcapital is 1.9 times less risky than CleanSpark. It trades about 0.19 of its potential returns per unit of risk. CleanSpark is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,255 in CleanSpark on August 28, 2024 and sell it today you would earn a total of 240.00 from holding CleanSpark or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netcapital vs. CleanSpark
Performance |
| Timeline |
| Netcapital |
| CleanSpark |
Netcapital and CleanSpark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcapital and CleanSpark
The main advantage of trading using opposite Netcapital and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcapital 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.| Netcapital vs. PowerUp Acquisition Corp | Netcapital vs. Aurora Innovation | Netcapital vs. HUMANA INC | Netcapital vs. Aquagold International |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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