Correlation Between Mask Investments and POWERGRID Infrastructure
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By analyzing existing cross correlation between Mask Investments Limited and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on Mask Investments and POWERGRID Infrastructure 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 Mask Investments with a short position of POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mask Investments and POWERGRID Infrastructure.
Diversification Opportunities for Mask Investments and POWERGRID Infrastructure
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mask and POWERGRID is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mask Investments Limited and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure and Mask Investments 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 Mask Investments Limited are associated (or correlated) with POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Mask Investments i.e., Mask Investments and POWERGRID Infrastructure go up and down completely randomly.
Pair Corralation between Mask Investments and POWERGRID Infrastructure
Assuming the 90 days trading horizon Mask Investments Limited is expected to generate 6.34 times more return on investment than POWERGRID Infrastructure. However, Mask Investments is 6.34 times more volatile than POWERGRID Infrastructure Investment. It trades about -0.02 of its potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about -0.55 per unit of risk. If you would invest 17,923 in Mask Investments Limited on December 13, 2024 and sell it today you would lose (663.00) from holding Mask Investments Limited or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mask Investments Limited vs. POWERGRID Infrastructure Inves
Performance |
| Timeline |
| Mask Investments |
| POWERGRID Infrastructure |
Mask Investments and POWERGRID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mask Investments and POWERGRID Infrastructure
The main advantage of trading using opposite Mask Investments and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mask Investments position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.| Mask Investments vs. Kingfa Science Technology | ||
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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