Correlation Between MASTERCARD and 00108WAF7
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By analyzing existing cross correlation between MASTERCARD INC and AEP TEX INC, you can compare the effects of market volatilities on MASTERCARD and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASTERCARD and 00108WAF7.
Diversification Opportunities for MASTERCARD and 00108WAF7
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MASTERCARD and 00108WAF7 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MASTERCARD INC and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC 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 INC are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of MASTERCARD i.e., MASTERCARD and 00108WAF7 go up and down completely randomly.
Pair Corralation between MASTERCARD and 00108WAF7
Assuming the 90 days trading horizon MASTERCARD INC is expected to under-perform the 00108WAF7. But the bond apears to be less risky and, when comparing its historical volatility, MASTERCARD INC is 3.15 times less risky than 00108WAF7. The bond trades about -0.15 of its potential returns per unit of risk. The AEP TEX INC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,351 in AEP TEX INC on September 2, 2024 and sell it today you would earn a total of 317.00 from holding AEP TEX INC or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
MASTERCARD INC vs. AEP TEX INC
Performance |
| Timeline |
| MASTERCARD INC |
| AEP TEX INC |
MASTERCARD and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MASTERCARD and 00108WAF7
The main advantage of trading using opposite MASTERCARD and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASTERCARD position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| MASTERCARD vs. AEP TEX INC | MASTERCARD vs. US BANK NATIONAL | MASTERCARD vs. American Express | MASTERCARD vs. Chevron Corp |
| 00108WAF7 vs. Zhihu Inc ADR | 00108WAF7 vs. Playtika Holding Corp | 00108WAF7 vs. Thor Industries | 00108WAF7 vs. Dana Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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