Correlation Between Carlyle and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Mawson Infrastructure Group, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Mawson Infrastructure.
Diversification Opportunities for Carlyle and Mawson Infrastructure
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlyle and Mawson is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Carlyle 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 Carlyle Group 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 Carlyle i.e., Carlyle and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between Carlyle and Mawson Infrastructure
Allowing for the 90-day total investment horizon Carlyle is expected to generate 2.23 times less return on investment than Mawson Infrastructure. But when comparing it to its historical volatility, Carlyle Group is 4.9 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 0.04 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Mawson Infrastructure Group on August 31, 2024 and sell it today you would lose (56.00) from holding Mawson Infrastructure Group or give up 20.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Mawson Infrastructure Group
Performance |
| Timeline |
| Carlyle Group |
| Mawson Infrastructure |
Carlyle and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Mawson Infrastructure
The main advantage of trading using opposite Carlyle and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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