Correlation Between Mawson Infrastructure and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Bitmine Immersion 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 Mawson Infrastructure and Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mawson Infrastructure Group and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Mawson Infrastructure and Bitmine Immersion 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 Mawson Infrastructure with a short position of Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Bitmine Immersion.
Diversification Opportunities for Mawson Infrastructure and Bitmine Immersion
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mawson and Bitmine is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Mawson Infrastructure 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 Mawson Infrastructure Group are associated (or correlated) with Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Bitmine Immersion
Given the investment horizon of 90 days Mawson Infrastructure is expected to generate 5.13 times less return on investment than Bitmine Immersion. In addition to that, Mawson Infrastructure is 1.05 times more volatile than Bitmine Immersion Technologies. It trades about 0.02 of its total potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.12 per unit of volatility. If you would invest 19.00 in Bitmine Immersion Technologies on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Bitmine Immersion Technologies or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mawson Infrastructure Group vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Mawson Infrastructure |
| Bitmine Immersion |
Mawson Infrastructure and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawson Infrastructure and Bitmine Immersion
The main advantage of trading using opposite Mawson Infrastructure and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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