Correlation Between Mawson Infrastructure and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Cipher Mining 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 Cipher Mining 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 Cipher Mining, you can compare the effects of market volatilities on Mawson Infrastructure and Cipher Mining 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 Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Cipher Mining.
Diversification Opportunities for Mawson Infrastructure and Cipher Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mawson and Cipher is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining 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 Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Cipher Mining go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Cipher Mining
Given the investment horizon of 90 days Mawson Infrastructure is expected to generate 2.04 times less return on investment than Cipher Mining. In addition to that, Mawson Infrastructure is 1.43 times more volatile than Cipher Mining. It trades about 0.03 of its total potential returns per unit of risk. Cipher Mining is currently generating about 0.07 per unit of volatility. If you would invest 152.00 in Cipher Mining on November 19, 2024 and sell it today you would earn a total of 454.00 from holding Cipher Mining or generate 298.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mawson Infrastructure Group vs. Cipher Mining
Performance |
| Timeline |
| Mawson Infrastructure |
| Cipher Mining |
Mawson Infrastructure and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawson Infrastructure and Cipher Mining
The main advantage of trading using opposite Mawson Infrastructure and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
| Cipher Mining vs. Iris Energy | Cipher Mining vs. CleanSpark | Cipher Mining vs. Stronghold Digital Mining | Cipher Mining 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 CEOs Directory module to screen CEOs from public companies around the world.
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