Correlation Between Mercurity Fintech and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech 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 Mercurity Fintech and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercurity Fintech Holding and Mawson Infrastructure Group, you can compare the effects of market volatilities on Mercurity Fintech 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 Mercurity Fintech with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and Mawson Infrastructure.
Diversification Opportunities for Mercurity Fintech and Mawson Infrastructure
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mercurity and Mawson is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Mercurity Fintech 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 Mercurity Fintech Holding 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 Mercurity Fintech i.e., Mercurity Fintech and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between Mercurity Fintech and Mawson Infrastructure
Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 1.04 times more return on investment than Mawson Infrastructure. However, Mercurity Fintech is 1.04 times more volatile than Mawson Infrastructure Group. It trades about 0.08 of its potential returns per unit of risk. Mawson Infrastructure Group is currently generating about 0.04 per unit of risk. If you would invest 110.00 in Mercurity Fintech Holding on August 31, 2024 and sell it today you would earn a total of 598.00 from holding Mercurity Fintech Holding or generate 543.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mercurity Fintech Holding vs. Mawson Infrastructure Group
Performance |
| Timeline |
| Mercurity Fintech Holding |
| Mawson Infrastructure |
Mercurity Fintech and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercurity Fintech and Mawson Infrastructure
The main advantage of trading using opposite Mercurity Fintech and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech 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.| Mercurity Fintech vs. Scully Royalty | Mercurity Fintech vs. Donnelley Financial Solutions | Mercurity Fintech vs. Heritage Global | Mercurity Fintech vs. Oppenheimer Holdings |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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