Correlation Between Mast Global and Global X
Can any of the company-specific risk be diversified away by investing in both Mast Global and Global X 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 Global X 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 Global X Funds, you can compare the effects of market volatilities on Mast Global and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Global X.
Diversification Opportunities for Mast Global and Global X
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mast and Global is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Mast Global i.e., Mast Global and Global X go up and down completely randomly.
Pair Corralation between Mast Global and Global X
Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 1.89 times more return on investment than Global X. However, Mast Global is 1.89 times more volatile than Global X Funds. It trades about 0.02 of its potential returns per unit of risk. Global X Funds is currently generating about -0.19 per unit of risk. If you would invest 2,518 in Mast Global Battery on August 24, 2024 and sell it today you would earn a total of 14.00 from holding Mast Global Battery or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. Global X Funds
Performance |
| Timeline |
| Mast Global Battery |
| Global X Funds |
Mast Global and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and Global X
The main advantage of trading using opposite Mast Global and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
| Global X vs. iShares Dividend and | Global X vs. Martin Currie Sustainable | Global X vs. VictoryShares THB Mid | Global X 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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