Correlation Between Gryphon Digital and CleanSpark

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

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

Diversification Opportunities for Gryphon Digital and CleanSpark

0.56

Correlation Coefficient

Gryphon Digital  CleanSpark

Very weak diversification

The 3 months correlation between Gryphon and CleanSpark is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gryphon Digital Mining and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Gryphon Digital 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 Gryphon Digital Mining 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 Gryphon Digital i.e., Gryphon Digital and CleanSpark go up and down completely randomly.

Pair Corralation between Gryphon Digital and CleanSpark

Given the investment horizon of 90 days Gryphon Digital Mining is expected to generate 5.4 times more return on investment than CleanSpark. However, Gryphon Digital is 5.4 times more volatile than CleanSpark. It trades about 0.15 of its potential returns per unit of risk. CleanSpark is currently generating about 0.11 per unit of risk. If you would invest  33.00  in Gryphon Digital Mining on May 5, 2025 and sell it today you would earn a total of  72.00  from holding Gryphon Digital Mining or generate 218.18% return on investment over 90 days.

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

Gryphon Digital Mining  vs.  CleanSpark

Gryphon Digital Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gryphon Digital Mining are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Gryphon Digital reported solid returns over the last few months and may actually be approaching a breakup point.

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 Gryphon Digital and CleanSpark

The main advantage of trading using opposite Gryphon Digital and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gryphon Digital 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 Gryphon Digital Mining 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.