Correlation Between Mast Global and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both Mast Global and Macquarie ETF 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 Macquarie ETF 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 Macquarie ETF Trust, you can compare the effects of market volatilities on Mast Global and Macquarie ETF 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Macquarie ETF.
Diversification Opportunities for Mast Global and Macquarie ETF
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mast and Macquarie is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF Trust 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of Mast Global i.e., Mast Global and Macquarie ETF go up and down completely randomly.
Pair Corralation between Mast Global and Macquarie ETF
Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Macquarie ETF. In addition to that, Mast Global is 1.56 times more volatile than Macquarie ETF Trust. It trades about -0.09 of its total potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.03 per unit of volatility. If you would invest 2,893 in Macquarie ETF Trust on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Macquarie ETF Trust or generate 1.31% 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. Macquarie ETF Trust
Performance |
| Timeline |
| Mast Global Battery |
| Macquarie ETF Trust |
Mast Global and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and Macquarie ETF
The main advantage of trading using opposite Mast Global and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| Mast Global vs. FlexShares Morningstar Global | Mast Global vs. SPDR Russell 1000 | Mast Global vs. SPDR MSCI EAFE | Mast Global vs. Dfa Intermediate Government |
| Macquarie ETF vs. Freedom Day Dividend | Macquarie ETF vs. Franklin Templeton ETF | Macquarie ETF vs. iShares MSCI China | Macquarie ETF 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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