Correlation Between Brookfield Asset and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset and Mawson Infrastructure 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 Brookfield Asset and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and Mawson Infrastructure Group, you can compare the effects of market volatilities on Brookfield Asset and Mawson Infrastructure 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 Brookfield Asset with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and Mawson Infrastructure.
Diversification Opportunities for Brookfield Asset and Mawson Infrastructure
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brookfield and Mawson is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Brookfield Asset 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 Brookfield Asset Management are associated (or correlated) with Mawson Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawson Infrastructure has no effect on the direction of Brookfield Asset i.e., Brookfield Asset and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between Brookfield Asset and Mawson Infrastructure
Considering the 90-day investment horizon Brookfield Asset Management is expected to generate 0.57 times more return on investment than Mawson Infrastructure. However, Brookfield Asset Management is 1.76 times less risky than Mawson Infrastructure. It trades about -0.09 of its potential returns per unit of risk. Mawson Infrastructure Group is currently generating about -0.7 per unit of risk. If you would invest 5,934 in Brookfield Asset Management on November 28, 2024 and sell it today you would lose (244.00) from holding Brookfield Asset Management or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Asset Management vs. Mawson Infrastructure Group
Performance |
| Timeline |
| Brookfield Asset Man |
| Mawson Infrastructure |
Brookfield Asset and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and Mawson Infrastructure
The main advantage of trading using opposite Brookfield Asset and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset position performs unexpectedly, Mawson Infrastructure 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 Mawson Infrastructure will offset losses from the drop in Mawson Infrastructure's long position.| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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