Correlation Between Mast Global and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both Mast Global and ProShares UltraShort 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 ProShares UltraShort 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 ProShares UltraShort Bloomberg, you can compare the effects of market volatilities on Mast Global and ProShares UltraShort 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 ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and ProShares UltraShort.
Diversification Opportunities for Mast Global and ProShares UltraShort
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mast and ProShares is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and ProShares UltraShort Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort 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 ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of Mast Global i.e., Mast Global and ProShares UltraShort go up and down completely randomly.
Pair Corralation between Mast Global and ProShares UltraShort
Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the ProShares UltraShort. But the etf apears to be less risky and, when comparing its historical volatility, Mast Global Battery is 1.64 times less risky than ProShares UltraShort. The etf trades about -0.03 of its potential returns per unit of risk. The ProShares UltraShort Bloomberg is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,735 in ProShares UltraShort Bloomberg on September 3, 2024 and sell it today you would earn a total of 97.00 from holding ProShares UltraShort Bloomberg or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. ProShares UltraShort Bloomberg
Performance |
| Timeline |
| Mast Global Battery |
| ProShares UltraShort |
Mast Global and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and ProShares UltraShort
The main advantage of trading using opposite Mast Global and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, ProShares UltraShort 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 ProShares UltraShort will offset losses from the drop in ProShares UltraShort'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 |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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