Correlation Between CLARIVATE PLC and BIT Mining

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

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

Diversification Opportunities for CLARIVATE PLC and BIT Mining

-0.53

Correlation Coefficient

CLARIVATE PLC  BIT Mining

Excellent diversification

The 3 months correlation between CLARIVATE and BIT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CLARIVATE PLC and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and CLARIVATE PLC 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 CLARIVATE PLC are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of CLARIVATE PLC i.e., CLARIVATE PLC and BIT Mining go up and down completely randomly.

Pair Corralation between CLARIVATE PLC and BIT Mining

Given the investment horizon of 90 days CLARIVATE PLC is expected to generate 0.52 times more return on investment than BIT Mining. However, CLARIVATE PLC is 1.93 times less risky than BIT Mining. It trades about -0.16 of its potential returns per unit of risk. BIT Mining is currently generating about -0.22 per unit of risk. If you would invest  565.00  in CLARIVATE PLC on October 9, 2024 and sell it today you would lose (54.00) from holding CLARIVATE PLC or give up 9.56% of portfolio value over 90 days.

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

CLARIVATE PLC  vs.  BIT Mining

CLARIVATE PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CLARIVATE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

BIT Mining

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BIT Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, BIT Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLARIVATE PLC and BIT Mining

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

The idea behind CLARIVATE PLC and BIT Mining 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.