Correlation Between CleanSpark and KB Home

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

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

Diversification Opportunities for CleanSpark and KB Home

-0.37

Correlation Coefficient

CleanSpark  KB Home

Very good diversification

The 3 months correlation between CleanSpark and KBH is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and KB Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Home 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 KB Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Home has no effect on the direction of CleanSpark i.e., CleanSpark and KB Home go up and down completely randomly.

Pair Corralation between CleanSpark and KB Home

Given the investment horizon of 90 days CleanSpark is expected to generate 3.29 times more return on investment than KB Home. However, CleanSpark is 3.29 times more volatile than KB Home. It trades about 0.07 of its potential returns per unit of risk. KB Home is currently generating about -0.01 per unit of risk. If you would invest  968.00  in CleanSpark on August 26, 2025 and sell it today you would earn a total of  180.00  from holding CleanSpark or generate 18.6% return on investment over 90 days.

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

CleanSpark  vs.  KB Home

CleanSpark

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CleanSpark are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, CleanSpark disclosed solid returns over the last few months and may actually be approaching a breakup point.

KB Home

Risk-Adjusted Performance

Weakest

Over the last 90 days KB Home has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, KB Home is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CleanSpark and KB Home

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

The idea behind CleanSpark and KB Home 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.