Correlation Between Mastercard and 180 Degree
Can any of the company-specific risk be diversified away by investing in both Mastercard and 180 Degree 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 180 Degree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and 180 Degree Capital, you can compare the effects of market volatilities on Mastercard and 180 Degree 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 180 Degree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and 180 Degree.
Diversification Opportunities for Mastercard and 180 Degree
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mastercard and 180 is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and 180 Degree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 180 Degree Capital 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 180 Degree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 180 Degree Capital has no effect on the direction of Mastercard i.e., Mastercard and 180 Degree go up and down completely randomly.
Pair Corralation between Mastercard and 180 Degree
Allowing for the 90-day total investment horizon Mastercard is expected to generate 2.02 times less return on investment than 180 Degree. But when comparing it to its historical volatility, Mastercard is 1.78 times less risky than 180 Degree. It trades about 0.14 of its potential returns per unit of risk. 180 Degree Capital is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 332.00 in 180 Degree Capital on August 31, 2024 and sell it today you would earn a total of 25.00 from holding 180 Degree Capital or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastercard vs. 180 Degree Capital
Performance |
| Timeline |
| Mastercard |
| 180 Degree Capital |
Mastercard and 180 Degree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and 180 Degree
The main advantage of trading using opposite Mastercard and 180 Degree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, 180 Degree 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 180 Degree will offset losses from the drop in 180 Degree's long position.| Mastercard vs. American Express | Mastercard vs. PayPal Holdings | Mastercard vs. Upstart Holdings | Mastercard vs. Capital One Financial |
| 180 Degree vs. Princeton Capital | 180 Degree vs. Urbana | 180 Degree vs. Blackhawk Growth Corp | 180 Degree vs. Flow Capital Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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