Correlation Between CleanSpark and Bitfarms

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

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

Diversification Opportunities for CleanSpark and Bitfarms

0.41

Correlation Coefficient

CleanSpark  Bitfarms

Very weak diversification

The 3 months correlation between CleanSpark and Bitfarms is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms 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 Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of CleanSpark i.e., CleanSpark and Bitfarms go up and down completely randomly.

Pair Corralation between CleanSpark and Bitfarms

Given the investment horizon of 90 days CleanSpark is expected to generate 0.88 times more return on investment than Bitfarms. However, CleanSpark is 1.14 times less risky than Bitfarms. It trades about 0.13 of its potential returns per unit of risk. Bitfarms is currently generating about 0.08 per unit of risk. If you would invest  867.00  in CleanSpark on May 1, 2025 and sell it today you would earn a total of  306.00  from holding CleanSpark or generate 35.29% return on investment over 90 days.

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

CleanSpark  vs.  Bitfarms

CleanSpark

Risk-Adjusted Performance

OK

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

Bitfarms

Risk-Adjusted Performance

Modest

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

Pair Trading with CleanSpark and Bitfarms

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

The idea behind CleanSpark and Bitfarms 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.