Correlation Between Mast Global and Investment Managers

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

Diversification Opportunities for Mast Global and Investment Managers

0.73

Correlation Coefficient

Mast Global  Investment Managers

Poor diversification

The 3 months correlation between Mast and Investment is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Investment Managers Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Managers 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 Investment Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Managers has no effect on the direction of Mast Global i.e., Mast Global and Investment Managers go up and down completely randomly.

Pair Corralation between Mast Global and Investment Managers

Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Investment Managers. In addition to that, Mast Global is 1.39 times more volatile than Investment Managers Series. It trades about -0.35 of its total potential returns per unit of risk. Investment Managers Series is currently generating about -0.41 per unit of volatility. If you would invest  4,597  in Investment Managers Series on October 11, 2024 and sell it today you would lose (257.00) from holding Investment Managers Series or give up 5.59% of portfolio value over 90 days.

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

Mast Global Battery  vs.  Investment Managers Series

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 latest weak performance, the Etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Investment Managers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Investment Managers Series has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Mast Global and Investment Managers

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

The idea behind Mast Global Battery and Investment Managers Series 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.