Correlation Between Coin Citadel and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both Coin Citadel 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 Coin Citadel and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coin Citadel and Mawson Infrastructure Group, you can compare the effects of market volatilities on Coin Citadel 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 Coin Citadel with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and Mawson Infrastructure.
Diversification Opportunities for Coin Citadel and Mawson Infrastructure
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coin and Mawson is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Coin Citadel 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 Coin Citadel 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 Coin Citadel i.e., Coin Citadel and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between Coin Citadel and Mawson Infrastructure
Given the investment horizon of 90 days Coin Citadel is expected to generate 3.67 times more return on investment than Mawson Infrastructure. However, Coin Citadel is 3.67 times more volatile than Mawson Infrastructure Group. It trades about 0.12 of its potential returns per unit of risk. Mawson Infrastructure Group is currently generating about 0.05 per unit of risk. If you would invest 0.02 in Coin Citadel on August 30, 2024 and sell it today you would lose (0.01) from holding Coin Citadel or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Coin Citadel vs. Mawson Infrastructure Group
Performance |
| Timeline |
| Coin Citadel |
| Mawson Infrastructure |
Coin Citadel and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and Mawson Infrastructure
The main advantage of trading using opposite Coin Citadel and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel 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.| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
| Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. CleanSpark | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Bitfarms |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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