Correlation Between Mast Global and SPDR Galaxy
Can any of the company-specific risk be diversified away by investing in both Mast Global and SPDR Galaxy 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 SPDR Galaxy 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 SPDR Galaxy Digital, you can compare the effects of market volatilities on Mast Global and SPDR Galaxy 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 SPDR Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and SPDR Galaxy.
Diversification Opportunities for Mast Global and SPDR Galaxy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mast and SPDR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and SPDR Galaxy Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Galaxy Digital 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 SPDR Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Galaxy Digital has no effect on the direction of Mast Global i.e., Mast Global and SPDR Galaxy go up and down completely randomly.
Pair Corralation between Mast Global and SPDR Galaxy
Allowing for the 90-day total investment horizon Mast Global is expected to generate 15.07 times less return on investment than SPDR Galaxy. But when comparing it to its historical volatility, Mast Global Battery is 4.22 times less risky than SPDR Galaxy. It trades about 0.03 of its potential returns per unit of risk. SPDR Galaxy Digital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,301 in SPDR Galaxy Digital on November 3, 2024 and sell it today you would earn a total of 318.00 from holding SPDR Galaxy Digital or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. SPDR Galaxy Digital
Performance |
| Timeline |
| Mast Global Battery |
| SPDR Galaxy Digital |
Mast Global and SPDR Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and SPDR Galaxy
The main advantage of trading using opposite Mast Global and SPDR Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, SPDR Galaxy 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 SPDR Galaxy will offset losses from the drop in SPDR Galaxy's long position.| Mast Global vs. iShares Dividend and | Mast Global vs. Martin Currie Sustainable | Mast Global vs. VictoryShares THB Mid | Mast Global vs. AdvisorShares Gerber Kawasaki |
| SPDR Galaxy vs. iShares Dividend and | SPDR Galaxy vs. Martin Currie Sustainable | SPDR Galaxy vs. VictoryShares THB Mid | SPDR Galaxy vs. Mast Global Battery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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