Correlation Between Global Business and CleanSpark

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

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

Diversification Opportunities for Global Business and CleanSpark

0.27

Correlation Coefficient

Global Business  CleanSpark

Modest diversification

The 3 months correlation between Global and CleanSpark is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Global Business Travel and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Global Business 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 Global Business Travel 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 Global Business i.e., Global Business and CleanSpark go up and down completely randomly.

Pair Corralation between Global Business and CleanSpark

Given the investment horizon of 90 days Global Business Travel is expected to under-perform the CleanSpark. But the stock apears to be less risky and, when comparing its historical volatility, Global Business Travel is 1.9 times less risky than CleanSpark. The stock trades about -0.07 of its potential returns per unit of risk. The CleanSpark is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  809.00  in CleanSpark on May 5, 2025 and sell it today you would earn a total of  235.00  from holding CleanSpark or generate 29.05% return on investment over 90 days.

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

Global Business Travel  vs.  CleanSpark

Global Business Travel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Business Travel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CleanSpark

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 8 (%) 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.

Pair Trading with Global Business and CleanSpark

The main advantage of trading using opposite Global Business and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Business 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 Global Business Travel 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.