Correlation Between Clever Leaves and Hycroft Mining

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

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

Diversification Opportunities for Clever Leaves and Hycroft Mining

0.0

Correlation Coefficient

Clever Leaves  Hycroft Mining

Pay attention - limited upside

The 3 months correlation between Clever and Hycroft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding and Clever Leaves 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 Clever Leaves Holdings are associated (or correlated) with Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Clever Leaves i.e., Clever Leaves and Hycroft Mining go up and down completely randomly.

Pair Corralation between Clever Leaves and Hycroft Mining

If you would invest  1.50  in Hycroft Mining Holding on November 28, 2024 and sell it today you would lose (0.82) from holding Hycroft Mining Holding or give up 54.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Clever Leaves Holdings  vs.  Hycroft Mining Holding

Clever Leaves Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clever Leaves Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Clever Leaves is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Hycroft Mining Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hycroft Mining Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental indicators, Hycroft Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clever Leaves and Hycroft Mining

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

The idea behind Clever Leaves Holdings and Hycroft Mining Holding 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.

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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 Stocks Directory module to find actively traded stocks across global markets.