Correlation Between Mawson Infrastructure and Bagger Daves
Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Bagger Daves 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 Bagger Daves 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 Bagger Daves Burger, you can compare the effects of market volatilities on Mawson Infrastructure and Bagger Daves 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 Bagger Daves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Bagger Daves.
Diversification Opportunities for Mawson Infrastructure and Bagger Daves
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mawson and Bagger is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Bagger Daves Burger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bagger Daves Burger 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 Bagger Daves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bagger Daves Burger has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Bagger Daves go up and down completely randomly.
Pair Corralation between Mawson Infrastructure and Bagger Daves
Given the investment horizon of 90 days Mawson Infrastructure Group is expected to under-perform the Bagger Daves. In addition to that, Mawson Infrastructure is 1.68 times more volatile than Bagger Daves Burger. It trades about -0.31 of its total potential returns per unit of risk. Bagger Daves Burger is currently generating about -0.26 per unit of volatility. If you would invest 5.72 in Bagger Daves Burger on December 5, 2024 and sell it today you would lose (0.91) from holding Bagger Daves Burger or give up 15.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mawson Infrastructure Group vs. Bagger Daves Burger
Performance |
Timeline |
Mawson Infrastructure |
Bagger Daves Burger |
Mawson Infrastructure and Bagger Daves Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mawson Infrastructure and Bagger Daves
The main advantage of trading using opposite Mawson Infrastructure and Bagger Daves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Bagger Daves 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 Bagger Daves will offset losses from the drop in Bagger Daves' 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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