Correlation Between Mast Global and Tema Electrification
Can any of the company-specific risk be diversified away by investing in both Mast Global and Tema Electrification 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 Tema Electrification 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 Tema Electrification ETF, you can compare the effects of market volatilities on Mast Global and Tema Electrification 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 Tema Electrification. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Tema Electrification.
Diversification Opportunities for Mast Global and Tema Electrification
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mast and Tema is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Tema Electrification ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema Electrification ETF 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 Tema Electrification. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema Electrification ETF has no effect on the direction of Mast Global i.e., Mast Global and Tema Electrification go up and down completely randomly.
Pair Corralation between Mast Global and Tema Electrification
Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Tema Electrification. But the etf apears to be less risky and, when comparing its historical volatility, Mast Global Battery is 1.42 times less risky than Tema Electrification. The etf trades about -0.37 of its potential returns per unit of risk. The Tema Electrification ETF is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 2,454 in Tema Electrification ETF on October 9, 2024 and sell it today you would lose (47.00) from holding Tema Electrification ETF or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. Tema Electrification ETF
Performance |
| Timeline |
| Mast Global Battery |
| Tema Electrification ETF |
Mast Global and Tema Electrification Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and Tema Electrification
The main advantage of trading using opposite Mast Global and Tema Electrification positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, Tema Electrification 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 Tema Electrification will offset losses from the drop in Tema Electrification'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 |
| Tema Electrification vs. iShares Dividend and | Tema Electrification vs. Martin Currie Sustainable | Tema Electrification vs. VictoryShares THB Mid | Tema Electrification 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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