Correlation Between Mast Global and FT Vest

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

Diversification Opportunities for Mast Global and FT Vest

0.04

Correlation Coefficient

Mast Global  FT Vest

Significant diversification

The 3 months correlation between Mast and DHDG is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and FT Vest Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Equity 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 FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Equity has no effect on the direction of Mast Global i.e., Mast Global and FT Vest go up and down completely randomly.

Pair Corralation between Mast Global and FT Vest

Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the FT Vest. In addition to that, Mast Global is 2.95 times more volatile than FT Vest Equity. It trades about -0.08 of its total potential returns per unit of risk. FT Vest Equity is currently generating about 0.03 per unit of volatility. If you would invest  3,062  in FT Vest Equity on October 7, 2024 and sell it today you would earn a total of  14.00  from holding FT Vest Equity or generate 0.46% 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.  FT Vest Equity

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.

FT Vest Equity

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FT Vest Equity are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, FT Vest is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mast Global and FT Vest

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

The idea behind Mast Global Battery and FT Vest Equity 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.