Correlation Between Mast Global and Ionic Inflation

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

By analyzing existing cross correlation between Mast Global Battery and Ionic Inflation Protection, you can compare the effects of market volatilities on Mast Global and Ionic Inflation 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 Mast Global with a short position of Ionic Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Ionic Inflation.

Diversification Opportunities for Mast Global and Ionic Inflation

-0.7

Correlation Coefficient

Mast Global  Ionic Inflation

Excellent diversification

The 3 months correlation between Mast and Ionic is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Ionic Inflation Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ionic Inflation Prot and Mast Global 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 Mast Global Battery are associated (or correlated) with Ionic Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ionic Inflation Prot has no effect on the direction of Mast Global i.e., Mast Global and Ionic Inflation go up and down completely randomly.

Pair Corralation between Mast Global and Ionic Inflation

Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Ionic Inflation. In addition to that, Mast Global is 16.05 times more volatile than Ionic Inflation Protection. It trades about -0.06 of its total potential returns per unit of risk. Ionic Inflation Protection is currently generating about 0.06 per unit of volatility. If you would invest  1,723  in Ionic Inflation Protection on October 8, 2024 and sell it today you would earn a total of  195.00  from holding Ionic Inflation Protection or generate 11.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	52.82%
Values	Daily Returns

Mast Global Battery  vs.  Ionic Inflation Protection

Mast Global Battery

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mast Global Battery has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

Ionic Inflation Prot

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ionic Inflation Protection are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Ionic Inflation is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Mast Global and Ionic Inflation

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

The idea behind Mast Global Battery and Ionic Inflation Protection 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.