Correlation Between Mast Global and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both Mast Global and Horizon Kinetics 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 Horizon Kinetics 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 Horizon Kinetics SPAC, you can compare the effects of market volatilities on Mast Global and Horizon Kinetics 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 Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Horizon Kinetics.
Diversification Opportunities for Mast Global and Horizon Kinetics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mast and Horizon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Horizon Kinetics SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics SPAC 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 Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics SPAC has no effect on the direction of Mast Global i.e., Mast Global and Horizon Kinetics go up and down completely randomly.
Pair Corralation between Mast Global and Horizon Kinetics
Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 3.05 times more return on investment than Horizon Kinetics. However, Mast Global is 3.05 times more volatile than Horizon Kinetics SPAC. It trades about 0.03 of its potential returns per unit of risk. Horizon Kinetics SPAC is currently generating about 0.03 per unit of risk. If you would invest 2,420 in Mast Global Battery on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Mast Global Battery or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. Horizon Kinetics SPAC
Performance |
| Timeline |
| Mast Global Battery |
| Horizon Kinetics SPAC |
Mast Global and Horizon Kinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and Horizon Kinetics
The main advantage of trading using opposite Mast Global and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' 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 |
| Horizon Kinetics vs. iShares Dividend and | Horizon Kinetics vs. Martin Currie Sustainable | Horizon Kinetics vs. VictoryShares THB Mid | Horizon Kinetics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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