Correlation Between Iris Energy and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both Iris Energy 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 Iris Energy and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iris Energy and Mawson Infrastructure Group, you can compare the effects of market volatilities on Iris Energy 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 Iris Energy with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Energy and Mawson Infrastructure.
Diversification Opportunities for Iris Energy and Mawson Infrastructure
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iris and Mawson is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Iris Energy and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Iris Energy 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 Iris Energy 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 Iris Energy i.e., Iris Energy and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between Iris Energy and Mawson Infrastructure
Given the investment horizon of 90 days Iris Energy is expected to generate 0.84 times more return on investment than Mawson Infrastructure. However, Iris Energy is 1.19 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 0.05 per unit of risk. If you would invest 140.00 in Iris Energy on August 30, 2024 and sell it today you would earn a total of 1,100 from holding Iris Energy or generate 785.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Iris Energy vs. Mawson Infrastructure Group
Performance |
| Timeline |
| Iris Energy |
| Mawson Infrastructure |
Iris Energy and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iris Energy and Mawson Infrastructure
The main advantage of trading using opposite Iris Energy and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Energy 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.| Iris Energy vs. Paysafe | Iris Energy vs. BBB Foods | Iris Energy vs. Bill Com Holdings | Iris Energy vs. Sligro Food Group |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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