Correlation Between Mawson Infrastructure and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Mawson Infrastructure and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Dow Jones.
Diversification Opportunities for Mawson Infrastructure and Dow Jones
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mawson and Dow is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Dow Jones go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Dow Jones
Given the investment horizon of 90 days Mawson Infrastructure Group is expected to generate 18.63 times more return on investment than Dow Jones. However, Mawson Infrastructure is 18.63 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 89.00 in Mawson Infrastructure Group on November 3, 2024 and sell it today you would lose (14.00) from holding Mawson Infrastructure Group or give up 15.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mawson Infrastructure Group vs. Dow Jones Industrial
Performance |
| Timeline |
Mawson Infrastructure and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Mawson Infrastructure Group
Pair trading matchups for Mawson Infrastructure
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Mawson Infrastructure and Dow Jones
The main advantage of trading using opposite Mawson Infrastructure and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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