Correlation Between DigiMax Global and CleanSpark

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

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

Diversification Opportunities for DigiMax Global and CleanSpark

-0.07

Correlation Coefficient

DigiMax Global  CleanSpark

Good diversification

The 3 months correlation between DigiMax and CleanSpark is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding DigiMax Global and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and DigiMax Global 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 DigiMax Global are associated (or correlated) with CleanSpark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanSpark has no effect on the direction of DigiMax Global i.e., DigiMax Global and CleanSpark go up and down completely randomly.

Pair Corralation between DigiMax Global and CleanSpark

Assuming the 90 days horizon DigiMax Global is expected to generate 13.74 times more return on investment than CleanSpark. However, DigiMax Global is 13.74 times more volatile than CleanSpark. It trades about 0.12 of its potential returns per unit of risk. CleanSpark is currently generating about 0.08 per unit of risk. If you would invest  3.50  in DigiMax Global on October 10, 2024 and sell it today you would lose (2.49) from holding DigiMax Global or give up 71.14% of portfolio value over 90 days.

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

DigiMax Global  vs.  CleanSpark

DigiMax Global

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DigiMax Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DigiMax Global reported solid returns over the last few months and may actually be approaching a breakup point.

CleanSpark

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, CleanSpark disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DigiMax Global and CleanSpark

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

The idea behind DigiMax Global and CleanSpark 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..