Correlation Between Mawson Infrastructure and MGT Capital
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and MGT Capital 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 MGT Capital 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 MGT Capital Investments, you can compare the effects of market volatilities on Mawson Infrastructure and MGT Capital 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 MGT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and MGT Capital.
Diversification Opportunities for Mawson Infrastructure and MGT Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mawson and MGT is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and MGT Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGT Capital Investments 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 MGT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGT Capital Investments has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and MGT Capital go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and MGT Capital
If you would invest 162.00 in Mawson Infrastructure Group on August 26, 2024 and sell it today you would earn a total of 17.00 from holding Mawson Infrastructure Group or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mawson Infrastructure Group vs. MGT Capital Investments
Performance |
| Timeline |
| Mawson Infrastructure |
| MGT Capital Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mawson Infrastructure and MGT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawson Infrastructure and MGT Capital
The main advantage of trading using opposite Mawson Infrastructure and MGT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, MGT Capital 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 MGT Capital will offset losses from the drop in MGT Capital's long position.| Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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