Correlation Between Mawson Infrastructure and Bitmine Immersion

Can any of the company-specific risk be diversified away by investing in both Mawson Infrastructure and Bitmine Immersion 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 Bitmine Immersion 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 Bitmine Immersion Technologies, you can compare the effects of market volatilities on Mawson Infrastructure and Bitmine Immersion 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 Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawson Infrastructure and Bitmine Immersion.

Diversification Opportunities for Mawson Infrastructure and Bitmine Immersion

0.41

Correlation Coefficient

Mawson Infrastructure  Bitmine Immersion

Very weak diversification

The 3 months correlation between Mawson and Bitmine is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mawson Infrastructure Group and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion 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 Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Mawson Infrastructure i.e., Mawson Infrastructure and Bitmine Immersion go up and down completely randomly.

Pair Corralation between Mawson Infrastructure and Bitmine Immersion

Given the investment horizon of 90 days Mawson Infrastructure Group is expected to under-perform the Bitmine Immersion. But the stock apears to be less risky and, when comparing its historical volatility, Mawson Infrastructure Group is 2.63 times less risky than Bitmine Immersion. The stock trades about -0.32 of its potential returns per unit of risk. The Bitmine Immersion Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Bitmine Immersion Technologies on December 11, 2024 and sell it today you would lose (26.00) from holding Bitmine Immersion Technologies or give up 48.15% of portfolio value over 90 days.

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

Mawson Infrastructure Group  vs.  Bitmine Immersion Technologies

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.

Bitmine Immersion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitmine Immersion Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Mawson Infrastructure and Bitmine Immersion

The main advantage of trading using opposite Mawson Infrastructure and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawson Infrastructure position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.

The idea behind Mawson Infrastructure Group and Bitmine Immersion Technologies 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.