Correlation Between Resolute Mining and Cleanspace Holdings

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

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

Diversification Opportunities for Resolute Mining and Cleanspace Holdings

0.62

Correlation Coefficient

Resolute Mining  Cleanspace Holdings

Poor diversification

The 3 months correlation between Resolute and Cleanspace is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Resolute Mining and Cleanspace Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanspace Holdings and Resolute Mining 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 Resolute Mining are associated (or correlated) with Cleanspace Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanspace Holdings has no effect on the direction of Resolute Mining i.e., Resolute Mining and Cleanspace Holdings go up and down completely randomly.

Pair Corralation between Resolute Mining and Cleanspace Holdings

Assuming the 90 days trading horizon Resolute Mining is expected to generate 1.67 times less return on investment than Cleanspace Holdings. But when comparing it to its historical volatility, Resolute Mining is 1.14 times less risky than Cleanspace Holdings. It trades about 0.16 of its potential returns per unit of risk. Cleanspace Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Cleanspace Holdings on April 24, 2025 and sell it today you would earn a total of  31.00  from holding Cleanspace Holdings or generate 79.49% return on investment over 90 days.

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

Resolute Mining  vs.  Cleanspace Holdings

Resolute Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Resolute Mining are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Resolute Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cleanspace Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cleanspace Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cleanspace Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Resolute Mining and Cleanspace Holdings

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

The idea behind Resolute Mining and Cleanspace Holdings 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.