Correlation Between Mastercard and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both Mastercard and PowerUp Acquisition 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 PowerUp Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and PowerUp Acquisition Corp, you can compare the effects of market volatilities on Mastercard and PowerUp Acquisition 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 PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and PowerUp Acquisition.
Diversification Opportunities for Mastercard and PowerUp Acquisition
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mastercard and PowerUp is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp Acquisition Corp 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of Mastercard i.e., Mastercard and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between Mastercard and PowerUp Acquisition
Allowing for the 90-day total investment horizon Mastercard is expected to generate 0.05 times more return on investment than PowerUp Acquisition. However, Mastercard is 19.3 times less risky than PowerUp Acquisition. It trades about 0.18 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about -0.08 per unit of risk. If you would invest 49,314 in Mastercard on August 30, 2024 and sell it today you would earn a total of 3,924 from holding Mastercard or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Mastercard vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| Mastercard |
| PowerUp Acquisition Corp |
Mastercard and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and PowerUp Acquisition
The main advantage of trading using opposite Mastercard and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, PowerUp Acquisition 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition's long position.| Mastercard vs. American Express | Mastercard vs. PayPal Holdings | Mastercard vs. Upstart Holdings | Mastercard vs. Capital One Financial |
| PowerUp Acquisition vs. ClimateRock Class A | PowerUp Acquisition vs. CF Acquisition VII | PowerUp Acquisition vs. DP Cap Acquisition |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |