Correlation Between CleanSpark and KapStone Paper

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

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

Diversification Opportunities for CleanSpark and KapStone Paper

0.0

Correlation Coefficient

CleanSpark  KapStone Paper

Pay attention - limited upside

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

Pair Corralation between CleanSpark and KapStone Paper

If you would invest  1,858  in CleanSpark on January 30, 2024 and sell it today you would earn a total of  65.00  from holding CleanSpark or generate 3.5% return on investment over 90 days.

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

CleanSpark  vs.  KapStone Paper And

CleanSpark

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 14 (%) 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.

KapStone Paper And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KapStone Paper And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, KapStone Paper is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CleanSpark and KapStone Paper

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

The idea behind CleanSpark and KapStone Paper And 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.