Correlation Between CleanSpark and SAI Old

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

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

Diversification Opportunities for CleanSpark and SAI Old

-0.52

Correlation Coefficient

CleanSpark  SAI Old

Excellent diversification

The 3 months correlation between CleanSpark and SAI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and SAI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAI Old 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 SAI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAI Old has no effect on the direction of CleanSpark i.e., CleanSpark and SAI Old go up and down completely randomly.

Pair Corralation between CleanSpark and SAI Old

Given the investment horizon of 90 days CleanSpark is expected to generate 1.2 times less return on investment than SAI Old. But when comparing it to its historical volatility, CleanSpark is 1.96 times less risky than SAI Old. It trades about 0.07 of its potential returns per unit of risk. SAI Old is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  137.00  in SAI Old on October 24, 2024 and sell it today you would lose (20.00) from holding SAI Old or give up 14.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	91.09%
Values	Daily Returns

CleanSpark  vs.  SAI Old

CleanSpark

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, CleanSpark may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SAI Old

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days SAI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly weak basic indicators, SAI Old demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CleanSpark and SAI Old

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

The idea behind CleanSpark and SAI Old 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.