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 Hedged, 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
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mast and SPDR is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and SPDR Galaxy Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Galaxy Hedged 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 Hedged 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 Battery is expected to generate 0.38 times more return on investment than SPDR Galaxy. However, Mast Global Battery is 2.6 times less risky than SPDR Galaxy. It trades about 0.08 of its potential returns per unit of risk. SPDR Galaxy Hedged is currently generating about -0.02 per unit of risk. If you would invest 2,536 in Mast Global Battery on September 13, 2024 and sell it today you would earn a total of 49.00 from holding Mast Global Battery or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mast Global Battery vs. SPDR Galaxy Hedged
Performance |
| Timeline |
| Mast Global Battery |
| SPDR Galaxy Hedged |
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. Freedom Day Dividend | Mast Global vs. Franklin Templeton ETF | Mast Global vs. iShares MSCI China | Mast Global vs. Tidal Trust II |
| SPDR Galaxy vs. Freedom Day Dividend | SPDR Galaxy vs. Franklin Templeton ETF | SPDR Galaxy vs. iShares MSCI China | SPDR Galaxy 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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