Correlation Between CleanSpark and Lazard

Can any of the company-specific risk be diversified away by investing in both CleanSpark and Lazard 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 CleanSpark and Lazard into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CleanSpark and Lazard, you can compare the effects of market volatilities on CleanSpark and Lazard 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 CleanSpark with a short position of Lazard. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanSpark and Lazard.

Diversification Opportunities for CleanSpark and Lazard

0.67

Correlation Coefficient

CleanSpark  Lazard

Poor diversification

The 3 months correlation between CleanSpark and Lazard is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard and CleanSpark 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 CleanSpark are associated (or correlated) with Lazard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard has no effect on the direction of CleanSpark i.e., CleanSpark and Lazard go up and down completely randomly.

Pair Corralation between CleanSpark and Lazard

Given the investment horizon of 90 days CleanSpark is expected to generate 2.15 times more return on investment than Lazard. However, CleanSpark is 2.15 times more volatile than Lazard. It trades about 0.18 of its potential returns per unit of risk. Lazard is currently generating about -0.04 per unit of risk. If you would invest  1,026  in CleanSpark on October 22, 2024 and sell it today you would earn a total of  161.00  from holding CleanSpark or generate 15.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CleanSpark  vs.  Lazard

CleanSpark

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, CleanSpark disclosed solid returns over the last few months and may actually be approaching a breakup point.

Lazard

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lazard has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Lazard is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CleanSpark and Lazard

The main advantage of trading using opposite CleanSpark and Lazard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanSpark position performs unexpectedly, Lazard 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 Lazard will offset losses from the drop in Lazard's long position.

The idea behind CleanSpark and Lazard pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.