Correlation Between Avalon GloboCare and Masterbeat

Can any of the company-specific risk be diversified away by investing in both Avalon GloboCare and Masterbeat 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 Avalon GloboCare and Masterbeat into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Avalon GloboCare Corp and Masterbeat, you can compare the effects of market volatilities on Avalon GloboCare and Masterbeat 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 Avalon GloboCare with a short position of Masterbeat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon GloboCare and Masterbeat.

Diversification Opportunities for Avalon GloboCare and Masterbeat

0.44

Correlation Coefficient

Avalon GloboCare  Masterbeat

Very weak diversification

The 3 months correlation between Avalon and Masterbeat is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Avalon GloboCare Corp and Masterbeat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterbeat and Avalon GloboCare 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 Avalon GloboCare Corp are associated (or correlated) with Masterbeat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterbeat has no effect on the direction of Avalon GloboCare i.e., Avalon GloboCare and Masterbeat go up and down completely randomly.

Pair Corralation between Avalon GloboCare and Masterbeat

If you would invest (100.00) in Masterbeat on September 5, 2024 and sell it today you would earn a total of  100.00  from holding Masterbeat or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Avalon GloboCare Corp  vs.  Masterbeat

Avalon GloboCare Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avalon GloboCare Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Masterbeat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Masterbeat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Masterbeat is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Avalon GloboCare and Masterbeat

The main advantage of trading using opposite Avalon GloboCare and Masterbeat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon GloboCare position performs unexpectedly, Masterbeat 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 Masterbeat will offset losses from the drop in Masterbeat's long position.

The idea behind Avalon GloboCare Corp and Masterbeat pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.