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

0.91

Correlation Coefficient

Mawson Infrastructure  Bagger Daves

Almost no diversification

The 3 months correlation between Mawson and Bagger is 0.91. 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 2.99 times more volatile than Bagger Daves Burger. It trades about -0.11 of its total potential returns per unit of risk. Bagger Daves Burger is currently generating about -0.22 per unit of volatility. If you would invest  6.53  in Bagger Daves Burger on December 27, 2024 and sell it today you would lose (1.72) from holding Bagger Daves Burger or give up 26.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.24%
Values	Daily Returns

Mawson Infrastructure Group  vs.  Bagger Daves Burger

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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Bagger Daves Burger

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bagger Daves Burger 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 basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.

The idea behind Mawson Infrastructure Group and Bagger Daves Burger 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .