Correlation Between Mast Global and Sprott Junior
Can any of the company-specific risk be diversified away by investing in both Mast Global and Sprott Junior 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 Sprott Junior 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 Sprott Junior Copper, you can compare the effects of market volatilities on Mast Global and Sprott Junior 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 Sprott Junior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Sprott Junior.
Diversification Opportunities for Mast Global and Sprott Junior
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mast and Sprott is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Sprott Junior Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Junior Copper 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 Sprott Junior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Junior Copper has no effect on the direction of Mast Global i.e., Mast Global and Sprott Junior go up and down completely randomly.
Pair Corralation between Mast Global and Sprott Junior
Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 0.83 times more return on investment than Sprott Junior. However, Mast Global Battery is 1.2 times less risky than Sprott Junior. It trades about 0.01 of its potential returns per unit of risk. Sprott Junior Copper is currently generating about -0.09 per unit of risk. If you would invest 2,529 in Mast Global Battery on August 23, 2024 and sell it today you would earn a total of 3.00 from holding Mast Global Battery or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. Sprott Junior Copper
Performance |
| Timeline |
| Mast Global Battery |
| Sprott Junior Copper |
Mast Global and Sprott Junior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and Sprott Junior
The main advantage of trading using opposite Mast Global and Sprott Junior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, Sprott Junior 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 Sprott Junior will offset losses from the drop in Sprott Junior's long position.| Mast Global vs. Franklin Templeton ETF | Mast Global vs. Tidal Trust II | Mast Global vs. Tidal Trust II | Mast Global vs. iShares Dividend and |
| Sprott Junior vs. Sprott Lithium Miners | Sprott Junior vs. Sprott Energy Transition | Sprott Junior vs. Sprott Junior Uranium | Sprott Junior vs. Sprott Nickel Miners |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |