Correlation Between ClearSign Combustion and Minim

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

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

Diversification Opportunities for ClearSign Combustion and Minim

-0.33

Correlation Coefficient

ClearSign Combustion  Minim

Very good diversification

The 3 months correlation between ClearSign and Minim is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ClearSign Combustion and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and ClearSign Combustion 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 ClearSign Combustion are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of ClearSign Combustion i.e., ClearSign Combustion and Minim go up and down completely randomly.

Pair Corralation between ClearSign Combustion and Minim

Given the investment horizon of 90 days ClearSign Combustion is expected to generate 21.38 times less return on investment than Minim. But when comparing it to its historical volatility, ClearSign Combustion is 5.39 times less risky than Minim. It trades about 0.04 of its potential returns per unit of risk. Minim Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Minim Inc on May 1, 2025 and sell it today you would earn a total of  171.00  from holding Minim Inc or generate 180.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	79.03%
Values	Daily Returns

ClearSign Combustion  vs.  Minim Inc

ClearSign Combustion

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ClearSign Combustion are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting forward indicators, ClearSign Combustion may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Minim Inc

Risk-Adjusted Performance

Good

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Minim displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ClearSign Combustion and Minim

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

The idea behind ClearSign Combustion and Minim Inc 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.