Correlation Between Xp and Mawson Infrastructure
Can any of the company-specific risk be diversified away by investing in both Xp and Mawson Infrastructure 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 Xp and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Mawson Infrastructure Group, you can compare the effects of market volatilities on Xp and Mawson Infrastructure 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 Xp with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Mawson Infrastructure.
Diversification Opportunities for Xp and Mawson Infrastructure
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xp and Mawson is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Xp 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 Xp Inc are associated (or correlated) with Mawson Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawson Infrastructure has no effect on the direction of Xp i.e., Xp and Mawson Infrastructure go up and down completely randomly.
Pair Corralation between Xp and Mawson Infrastructure
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Mawson Infrastructure. But the stock apears to be less risky and, when comparing its historical volatility, Xp Inc is 3.61 times less risky than Mawson Infrastructure. The stock trades about -0.27 of its potential returns per unit of risk. The Mawson Infrastructure Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Mawson Infrastructure Group on August 30, 2024 and sell it today you would earn a total of 34.00 from holding Mawson Infrastructure Group or generate 19.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. Mawson Infrastructure Group
Performance |
| Timeline |
| Xp Inc |
| Mawson Infrastructure |
Xp and Mawson Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Mawson Infrastructure
The main advantage of trading using opposite Xp and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp position performs unexpectedly, Mawson Infrastructure 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 Mawson Infrastructure will offset losses from the drop in Mawson Infrastructure's long position.| Xp vs. Raymond James Financial | Xp vs. Selective Insurance Group | Xp vs. Reinsurance Group of | Xp vs. Houlihan Lokey |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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