Correlation Between Evercore Partners and Mawson Infrastructure

Can any of the company-specific risk be diversified away by investing in both Evercore Partners 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 Evercore Partners and Mawson Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Evercore Partners and Mawson Infrastructure Group, you can compare the effects of market volatilities on Evercore Partners 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 Evercore Partners with a short position of Mawson Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evercore Partners and Mawson Infrastructure.

Diversification Opportunities for Evercore Partners and Mawson Infrastructure

0.79

Correlation Coefficient

Evercore Partners  Mawson Infrastructure

Poor diversification

The 3 months correlation between Evercore and Mawson is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Partners and Mawson Infrastructure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawson Infrastructure and Evercore Partners 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 Evercore Partners 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 Evercore Partners i.e., Evercore Partners and Mawson Infrastructure go up and down completely randomly.

Pair Corralation between Evercore Partners and Mawson Infrastructure

Considering the 90-day investment horizon Evercore Partners is expected to generate 0.11 times more return on investment than Mawson Infrastructure. However, Evercore Partners is 8.82 times less risky than Mawson Infrastructure. It trades about -0.22 of its potential returns per unit of risk. Mawson Infrastructure Group is currently generating about -0.08 per unit of risk. If you would invest  30,790  in Evercore Partners on November 28, 2024 and sell it today you would lose (6,737) from holding Evercore Partners or give up 21.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Evercore Partners  vs.  Mawson Infrastructure Group

Evercore Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evercore Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Mawson Infrastructure

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mawson Infrastructure Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Evercore Partners and Mawson Infrastructure

The main advantage of trading using opposite Evercore Partners and Mawson Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evercore Partners 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.

The idea behind Evercore Partners and Mawson Infrastructure Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.