Correlation Between CleanSpark and Circle Internet

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

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

Diversification Opportunities for CleanSpark and Circle Internet

0.57

Correlation Coefficient

CleanSpark  Circle Internet

Very weak diversification

The 3 months correlation between CleanSpark and Circle is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Circle Internet Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circle Internet Group, 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 Circle Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circle Internet Group, has no effect on the direction of CleanSpark i.e., CleanSpark and Circle Internet go up and down completely randomly.

Pair Corralation between CleanSpark and Circle Internet

Given the investment horizon of 90 days CleanSpark is expected to generate 40.47 times less return on investment than Circle Internet. But when comparing it to its historical volatility, CleanSpark is 5.74 times less risky than Circle Internet. It trades about 0.03 of its potential returns per unit of risk. Circle Internet Group, is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,100  in Circle Internet Group, on May 20, 2025 and sell it today you would earn a total of  11,058  from holding Circle Internet Group, or generate 356.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	83.87%
Values	Daily Returns

CleanSpark  vs.  Circle Internet Group,

CleanSpark

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, CleanSpark may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Circle Internet Group,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Circle Internet Group, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Circle Internet disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CleanSpark and Circle Internet

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

The idea behind CleanSpark and Circle Internet Group, 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..