Correlation Between Xp and CleanSpark
Can any of the company-specific risk be diversified away by investing in both Xp 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 Xp and CleanSpark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and CleanSpark, you can compare the effects of market volatilities on Xp 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 Xp with a short position of CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and CleanSpark.
Diversification Opportunities for Xp and CleanSpark
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xp and CleanSpark is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Xp 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 Xp Inc 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 Xp i.e., Xp and CleanSpark go up and down completely randomly.
Pair Corralation between Xp and CleanSpark
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the CleanSpark. But the stock apears to be less risky and, when comparing its historical volatility, Xp Inc is 4.1 times less risky than CleanSpark. The stock trades about -0.2 of its potential returns per unit of risk. The CleanSpark is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,163 in CleanSpark on August 24, 2024 and sell it today you would earn a total of 134.00 from holding CleanSpark or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. CleanSpark
Performance |
| Timeline |
| Xp Inc |
| CleanSpark |
Xp and CleanSpark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and CleanSpark
The main advantage of trading using opposite Xp and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp 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.| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess Holdings |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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