Correlation Between Mawson Infrastructure and World Technology
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and World Technology 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 World Technology 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 World Technology Corp, you can compare the effects of market volatilities on Mawson Infrastructure and World Technology 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 World Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and World Technology.
Diversification Opportunities for Mawson Infrastructure and World Technology
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mawson and World is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and World Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Technology Corp 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 World Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Technology Corp has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and World Technology go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and World Technology
Given the investment horizon of 90 days Mawson Infrastructure Group is expected to generate 1.08 times more return on investment than World Technology. However, Mawson Infrastructure is 1.08 times more volatile than World Technology Corp. It trades about 0.03 of its potential returns per unit of risk. World Technology Corp is currently generating about 0.0 per unit of risk. If you would invest 118.00 in Mawson Infrastructure Group on November 2, 2024 and sell it today you would lose (43.00) from holding Mawson Infrastructure Group or give up 36.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mawson Infrastructure Group vs. World Technology Corp
Performance |
| Timeline |
| Mawson Infrastructure |
| World Technology Corp |
Mawson Infrastructure and World Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawson Infrastructure and World Technology
The main advantage of trading using opposite Mawson Infrastructure and World Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, World Technology 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 World Technology will offset losses from the drop in World Technology's long position.| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
| World Technology vs. Sony Group Corp | World Technology vs. Wearable Devices | World Technology vs. Sonos Inc | World Technology vs. GoPro 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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