Correlation Between Mast Global and Gabelli ETFs

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

Diversification Opportunities for Mast Global and Gabelli ETFs

-0.02

Correlation Coefficient

Mast Global  Gabelli ETFs

Good diversification

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

Pair Corralation between Mast Global and Gabelli ETFs

Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Gabelli ETFs. But the etf apears to be less risky and, when comparing its historical volatility, Mast Global Battery is 1.0 times less risky than Gabelli ETFs. The etf trades about -0.39 of its potential returns per unit of risk. The Gabelli ETFs Trust is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest  2,899  in Gabelli ETFs Trust on October 12, 2024 and sell it today you would lose (164.00) from holding Gabelli ETFs Trust or give up 5.66% of portfolio value over 90 days.

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

Mast Global Battery  vs.  Gabelli ETFs Trust

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.

Gabelli ETFs Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gabelli ETFs Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Gabelli ETFs is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Mast Global and Gabelli ETFs

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

The idea behind Mast Global Battery and Gabelli ETFs Trust 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.