Correlation Between Mawson Infrastructure and Houlihan Lokey
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Houlihan Lokey 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 Houlihan Lokey 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 Houlihan Lokey, you can compare the effects of market volatilities on Mawson Infrastructure and Houlihan Lokey 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 Houlihan Lokey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Houlihan Lokey.
Diversification Opportunities for Mawson Infrastructure and Houlihan Lokey
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mawson and Houlihan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Houlihan Lokey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Houlihan Lokey 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 Houlihan Lokey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Houlihan Lokey has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Houlihan Lokey go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Houlihan Lokey
Given the investment horizon of 90 days Mawson Infrastructure Group is expected to generate 4.06 times more return on investment than Houlihan Lokey. However, Mawson Infrastructure is 4.06 times more volatile than Houlihan Lokey. It trades about 0.08 of its potential returns per unit of risk. Houlihan Lokey is currently generating about 0.19 per unit of risk. If you would invest 141.00 in Mawson Infrastructure Group on August 28, 2024 and sell it today you would earn a total of 31.00 from holding Mawson Infrastructure Group or generate 21.99% 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. Houlihan Lokey
Performance |
| Timeline |
| Mawson Infrastructure |
| Houlihan Lokey |
Mawson Infrastructure and Houlihan Lokey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawson Infrastructure and Houlihan Lokey
The main advantage of trading using opposite Mawson Infrastructure and Houlihan Lokey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Houlihan Lokey 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 Houlihan Lokey will offset losses from the drop in Houlihan Lokey's long position.| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
| Houlihan Lokey vs. Lazard | Houlihan Lokey vs. PJT Partners | Houlihan Lokey vs. Moelis Co | Houlihan Lokey vs. Piper Sandler Companies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |