Correlation Between Mawson Infrastructure and Xp
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Xp 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 Xp 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 Xp Inc, you can compare the effects of market volatilities on Mawson Infrastructure and Xp 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 Xp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Xp.
Diversification Opportunities for Mawson Infrastructure and Xp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mawson and Xp is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Xp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Inc 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 Xp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Inc has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Xp go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Xp
Given the investment horizon of 90 days Mawson Infrastructure Group is expected to generate 4.81 times more return on investment than Xp. However, Mawson Infrastructure is 4.81 times more volatile than Xp Inc. It trades about 0.05 of its potential returns per unit of risk. Xp Inc is currently generating about -0.11 per unit of risk. If you would invest 132.00 in Mawson Infrastructure Group on September 24, 2024 and sell it today you would lose (38.00) from holding Mawson Infrastructure Group or give up 28.79% 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. Xp Inc
Performance |
Timeline |
Mawson Infrastructure |
Xp Inc |
Mawson Infrastructure and Xp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mawson Infrastructure and Xp
The main advantage of trading using opposite Mawson Infrastructure and Xp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Xp 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 Xp will offset losses from the drop in Xp's long position.Mawson Infrastructure vs. Terawulf | Mawson Infrastructure vs. Iris Energy | Mawson Infrastructure vs. Stronghold Digital Mining | Mawson Infrastructure vs. Argo Blockchain PLC |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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