Correlation Between Mastercard and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Mastercard and Gabelli Global 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 Mastercard and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and Gabelli Global Small, you can compare the effects of market volatilities on Mastercard and Gabelli Global 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 Mastercard with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and Gabelli Global.
Diversification Opportunities for Mastercard and Gabelli Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mastercard and Gabelli is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and Gabelli Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Small and Mastercard 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 Mastercard are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Small has no effect on the direction of Mastercard i.e., Mastercard and Gabelli Global go up and down completely randomly.
Pair Corralation between Mastercard and Gabelli Global
Allowing for the 90-day total investment horizon Mastercard is expected to generate 1.13 times more return on investment than Gabelli Global. However, Mastercard is 1.13 times more volatile than Gabelli Global Small. It trades about 0.17 of its potential returns per unit of risk. Gabelli Global Small is currently generating about 0.19 per unit of risk. If you would invest 48,148 in Mastercard on September 3, 2024 and sell it today you would earn a total of 5,146 from holding Mastercard or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastercard vs. Gabelli Global Small
Performance |
| Timeline |
| Mastercard |
| Gabelli Global Small |
Mastercard and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and Gabelli Global
The main advantage of trading using opposite Mastercard and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, Gabelli Global 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| Mastercard vs. American Express | Mastercard vs. Capital One Financial | Mastercard vs. Upstart Holdings | Mastercard vs. Ally Financial |
| Gabelli Global vs. Western Asset Global | Gabelli Global vs. Invesco Trust For | Gabelli Global vs. Logan Ridge Finance | Gabelli Global vs. Invesco Advantage MIT |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |