Correlation Between Mast Global and SPDR Galaxy

Can any of the company-specific risk be diversified away by investing in both Mast Global and SPDR Galaxy 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 SPDR Galaxy 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 SPDR Galaxy Digital, you can compare the effects of market volatilities on Mast Global and SPDR Galaxy 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 SPDR Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and SPDR Galaxy.

Diversification Opportunities for Mast Global and SPDR Galaxy

0.02

Correlation Coefficient

Mast Global  SPDR Galaxy

Significant diversification

The 3 months correlation between Mast and SPDR is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and SPDR Galaxy Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Galaxy Digital 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 SPDR Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Galaxy Digital has no effect on the direction of Mast Global i.e., Mast Global and SPDR Galaxy go up and down completely randomly.

Pair Corralation between Mast Global and SPDR Galaxy

Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 0.28 times more return on investment than SPDR Galaxy. However, Mast Global Battery is 3.62 times less risky than SPDR Galaxy. It trades about 0.05 of its potential returns per unit of risk. SPDR Galaxy Digital is currently generating about -0.1 per unit of risk. If you would invest  2,425  in Mast Global Battery on December 19, 2024 and sell it today you would earn a total of  67.00  from holding Mast Global Battery or generate 2.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mast Global Battery  vs.  SPDR Galaxy Digital

Mast Global Battery

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mast Global Battery are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Mast Global is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

SPDR Galaxy Digital

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPDR Galaxy Digital 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 fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Mast Global and SPDR Galaxy

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

The idea behind Mast Global Battery and SPDR Galaxy Digital 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.