Correlation Between GreenBank Capital and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both GreenBank Capital 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 GreenBank Capital and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenBank Capital and Mawson Infrastructure Group, you can compare the effects of market volatilities on GreenBank Capital 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 GreenBank Capital with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenBank Capital and Mawson Infrastructure.
Diversification Opportunities for GreenBank Capital and Mawson Infrastructure
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GreenBank and Mawson is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding GreenBank Capital and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and GreenBank Capital 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 GreenBank Capital 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 GreenBank Capital i.e., GreenBank Capital and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between GreenBank Capital and Mawson Infrastructure
Assuming the 90 days horizon GreenBank Capital is expected to generate 7.74 times more return on investment than Mawson Infrastructure. However, GreenBank Capital is 7.74 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 9.04 in GreenBank Capital on August 30, 2024 and sell it today you would lose (8.17) from holding GreenBank Capital or give up 90.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GreenBank Capital vs. Mawson Infrastructure Group
Performance |
| Timeline |
| GreenBank Capital |
| Mawson Infrastructure |
GreenBank Capital and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenBank Capital and Mawson Infrastructure
The main advantage of trading using opposite GreenBank Capital and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenBank Capital 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.| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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