Correlation Between Mawson Infrastructure and Coin Citadel
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Coin Citadel 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 Coin Citadel 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 Coin Citadel, you can compare the effects of market volatilities on Mawson Infrastructure and Coin Citadel 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 Coin Citadel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Coin Citadel.
Diversification Opportunities for Mawson Infrastructure and Coin Citadel
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mawson and Coin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel 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 Coin Citadel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin Citadel has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Coin Citadel go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Coin Citadel
Given the investment horizon of 90 days Mawson Infrastructure is expected to generate 9.15 times less return on investment than Coin Citadel. But when comparing it to its historical volatility, Mawson Infrastructure Group is 3.67 times less risky than Coin Citadel. It trades about 0.05 of its potential returns per unit of risk. Coin Citadel is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Coin Citadel on August 30, 2024 and sell it today you would lose (0.01) from holding Coin Citadel or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mawson Infrastructure Group vs. Coin Citadel
Performance |
| Timeline |
| Mawson Infrastructure |
| Coin Citadel |
Mawson Infrastructure and Coin Citadel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawson Infrastructure and Coin Citadel
The main advantage of trading using opposite Mawson Infrastructure and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Coin Citadel 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 Coin Citadel will offset losses from the drop in Coin Citadel's long position.| Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. CleanSpark | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Bitfarms |
| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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