Correlation Between Compass and CleanSpark

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Can any of the company-specific risk be diversified away by investing in both Compass 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 Compass and CleanSpark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compass and CleanSpark, you can compare the effects of market volatilities on Compass 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 Compass with a short position of CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compass and CleanSpark.

Diversification Opportunities for Compass and CleanSpark

-0.74
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Compass and CleanSpark is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Compass and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark and Compass 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 Compass 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 Compass i.e., Compass and CleanSpark go up and down completely randomly.

Pair Corralation between Compass and CleanSpark

Given the investment horizon of 90 days Compass is expected to generate 0.44 times more return on investment than CleanSpark. However, Compass is 2.26 times less risky than CleanSpark. It trades about 0.15 of its potential returns per unit of risk. CleanSpark is currently generating about -0.04 per unit of risk. If you would invest  822.00  in Compass on September 27, 2025 and sell it today you would earn a total of  234.00  from holding Compass or generate 28.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Compass  vs.  CleanSpark

 Performance 
       Timeline  
Compass 

Risk-Adjusted Performance

Good

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

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days CleanSpark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Compass and CleanSpark Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Compass and CleanSpark

The main advantage of trading using opposite Compass and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compass 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 Compass 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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