Correlation Between Mast Global and KraneShares Artificial
Can any of the company-specific risk be diversified away by investing in both Mast Global and KraneShares Artificial 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 Mast Global and KraneShares Artificial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mast Global Battery and KraneShares Artificial Intelligence, you can compare the effects of market volatilities on Mast Global and KraneShares Artificial 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 Mast Global with a short position of KraneShares Artificial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and KraneShares Artificial.
Diversification Opportunities for Mast Global and KraneShares Artificial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mast and KraneShares is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and KraneShares Artificial Intelli in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Artificial and Mast Global 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 Mast Global Battery are associated (or correlated) with KraneShares Artificial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Artificial has no effect on the direction of Mast Global i.e., Mast Global and KraneShares Artificial go up and down completely randomly.
Pair Corralation between Mast Global and KraneShares Artificial
Allowing for the 90-day total investment horizon Mast Global is expected to generate 11.38 times less return on investment than KraneShares Artificial. But when comparing it to its historical volatility, Mast Global Battery is 1.23 times less risky than KraneShares Artificial. It trades about 0.01 of its potential returns per unit of risk. KraneShares Artificial Intelligence is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,480 in KraneShares Artificial Intelligence on September 12, 2024 and sell it today you would earn a total of 459.00 from holding KraneShares Artificial Intelligence or generate 18.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.21% |
| Values | Daily Returns |
Mast Global Battery vs. KraneShares Artificial Intelli
Performance |
| Timeline |
| Mast Global Battery |
| KraneShares Artificial |
Mast Global and KraneShares Artificial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and KraneShares Artificial
The main advantage of trading using opposite Mast Global and KraneShares Artificial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, KraneShares Artificial 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 KraneShares Artificial will offset losses from the drop in KraneShares Artificial's long position.| Mast Global vs. Freedom Day Dividend | Mast Global vs. Franklin Templeton ETF | Mast Global vs. iShares MSCI China | Mast Global vs. Tidal Trust II |
| KraneShares Artificial vs. Freedom Day Dividend | KraneShares Artificial vs. Franklin Templeton ETF | KraneShares Artificial vs. iShares MSCI China | KraneShares Artificial vs. Tidal Trust II |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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