Correlation Between CleanSpark and SAITECH Global

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

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

Diversification Opportunities for CleanSpark and SAITECH Global

-0.43

Correlation Coefficient

CleanSpark  SAITECH Global

Very good diversification

The 3 months correlation between CleanSpark and SAITECH is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and SAITECH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAITECH Global 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 SAITECH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAITECH Global has no effect on the direction of CleanSpark i.e., CleanSpark and SAITECH Global go up and down completely randomly.

Pair Corralation between CleanSpark and SAITECH Global

Given the investment horizon of 90 days CleanSpark is expected to generate 8.16 times less return on investment than SAITECH Global. But when comparing it to its historical volatility, CleanSpark is 2.1 times less risky than SAITECH Global. It trades about 0.04 of its potential returns per unit of risk. SAITECH Global is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  71.00  in SAITECH Global on October 6, 2024 and sell it today you would earn a total of  46.00  from holding SAITECH Global or generate 64.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	46.77%
Values	Daily Returns

CleanSpark  vs.  SAITECH Global

CleanSpark

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, CleanSpark disclosed solid returns over the last few months and may actually be approaching a breakup point.

SAITECH Global

Risk-Adjusted Performance

0 of 100

Good

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

Pair Trading with CleanSpark and SAITECH Global

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

The idea behind CleanSpark and SAITECH Global 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.