Correlation Between Mast Global and IShares North
Can any of the company-specific risk be diversified away by investing in both Mast Global and IShares North 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 IShares North 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 iShares North American, you can compare the effects of market volatilities on Mast Global and IShares North 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 IShares North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and IShares North.
Diversification Opportunities for Mast Global and IShares North
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mast and IShares is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and iShares North American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares North American 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 IShares North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares North American has no effect on the direction of Mast Global i.e., Mast Global and IShares North go up and down completely randomly.
Pair Corralation between Mast Global and IShares North
Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 1.9 times more return on investment than IShares North. However, Mast Global is 1.9 times more volatile than iShares North American. It trades about 0.1 of its potential returns per unit of risk. iShares North American is currently generating about 0.15 per unit of risk. If you would invest 2,277 in Mast Global Battery on September 2, 2024 and sell it today you would earn a total of 243.00 from holding Mast Global Battery or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. iShares North American
Performance |
| Timeline |
| Mast Global Battery |
| iShares North American |
Mast Global and IShares North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and IShares North
The main advantage of trading using opposite Mast Global and IShares North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, IShares North 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 IShares North will offset losses from the drop in IShares North's long position.| Mast Global vs. Freedom Day Dividend | Mast Global vs. iShares MSCI China | Mast Global vs. iShares Dividend and | Mast Global vs. SmartETFs Dividend Builder |
| IShares North vs. iShares Energy ETF | IShares North vs. iShares Basic Materials | IShares North vs. iShares Global Energy | IShares North vs. iShares Cohen Steers |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |