Correlation Between CleanSpark and Zhong Yang

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

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

Diversification Opportunities for CleanSpark and Zhong Yang

-0.36

Correlation Coefficient

CleanSpark  Zhong Yang

Very good diversification

The 3 months correlation between CleanSpark and Zhong is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Zhong Yang Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhong Yang Financial 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 Zhong Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhong Yang Financial has no effect on the direction of CleanSpark i.e., CleanSpark and Zhong Yang go up and down completely randomly.

Pair Corralation between CleanSpark and Zhong Yang

Given the investment horizon of 90 days CleanSpark is expected to generate 2.43 times more return on investment than Zhong Yang. However, CleanSpark is 2.43 times more volatile than Zhong Yang Financial. It trades about 0.05 of its potential returns per unit of risk. Zhong Yang Financial is currently generating about -0.05 per unit of risk. If you would invest  1,056  in CleanSpark on October 6, 2024 and sell it today you would earn a total of  24.00  from holding CleanSpark or generate 2.27% return on investment over 90 days.

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

CleanSpark  vs.  Zhong Yang Financial

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.

Zhong Yang Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zhong Yang Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CleanSpark and Zhong Yang

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

The idea behind CleanSpark and Zhong Yang Financial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.