Correlation Between MasTec and Ming Shing
Can any of the company-specific risk be diversified away by investing in both MasTec and Ming Shing 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 MasTec and Ming Shing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MasTec Inc and Ming Shing Group, you can compare the effects of market volatilities on MasTec and Ming Shing 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 MasTec with a short position of Ming Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of MasTec and Ming Shing.
Diversification Opportunities for MasTec and Ming Shing
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MasTec and Ming is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding MasTec Inc and Ming Shing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Shing Group and MasTec 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 MasTec Inc are associated (or correlated) with Ming Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Shing Group has no effect on the direction of MasTec i.e., MasTec and Ming Shing go up and down completely randomly.
Pair Corralation between MasTec and Ming Shing
Considering the 90-day investment horizon MasTec is expected to generate 9.73 times less return on investment than Ming Shing. But when comparing it to its historical volatility, MasTec Inc is 6.69 times less risky than Ming Shing. It trades about 0.1 of its potential returns per unit of risk. Ming Shing Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Ming Shing Group on October 15, 2024 and sell it today you would earn a total of 135.00 from holding Ming Shing Group or generate 23.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MasTec Inc vs. Ming Shing Group
Performance |
| Timeline |
| MasTec Inc |
| Ming Shing Group |
MasTec and Ming Shing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MasTec and Ming Shing
The main advantage of trading using opposite MasTec and Ming Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MasTec position performs unexpectedly, Ming Shing 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 Ming Shing will offset losses from the drop in Ming Shing's long position.| MasTec vs. EMCOR Group | MasTec vs. Comfort Systems USA | MasTec vs. Primoris Services | MasTec vs. Granite Construction Incorporated |
| Ming Shing vs. Kulicke and Soffa | Ming Shing vs. Arm Holdings plc | Ming Shing vs. Diageo PLC ADR | Ming Shing vs. FormFactor |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |