Correlation Between Mast Global and StockSnips

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

Diversification Opportunities for Mast Global and StockSnips

-0.09

Correlation Coefficient

Mast Global  StockSnips

Good diversification

The 3 months correlation between Mast and StockSnips is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and StockSnips AI Powered Sentimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StockSnips AI Powered 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 StockSnips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StockSnips AI Powered has no effect on the direction of Mast Global i.e., Mast Global and StockSnips go up and down completely randomly.

Pair Corralation between Mast Global and StockSnips

Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 0.96 times more return on investment than StockSnips. However, Mast Global Battery is 1.04 times less risky than StockSnips. It trades about 0.03 of its potential returns per unit of risk. StockSnips AI Powered Sentiment is currently generating about -0.05 per unit of risk. If you would invest  2,420  in Mast Global Battery on December 28, 2024 and sell it today you would earn a total of  41.00  from holding Mast Global Battery or generate 1.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Mast Global Battery  vs.  StockSnips AI Powered Sentimen

Mast Global Battery

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mast Global Battery are ranked lower than 2 (%) 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.

StockSnips AI Powered

Risk-Adjusted Performance

Very Weak

Over the last 90 days StockSnips AI Powered Sentiment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, StockSnips is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mast Global and StockSnips

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

The idea behind Mast Global Battery and StockSnips AI Powered Sentiment 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.