Correlation Between Mast Global and Meet Kevin

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

Diversification Opportunities for Mast Global and Meet Kevin

-0.08

Correlation Coefficient

Mast Global  Meet Kevin

Good diversification

The 3 months correlation between Mast and Meet is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and The Meet Kevin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meet Kevin 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 Meet Kevin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meet Kevin has no effect on the direction of Mast Global i.e., Mast Global and Meet Kevin go up and down completely randomly.

Pair Corralation between Mast Global and Meet Kevin

Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 0.86 times more return on investment than Meet Kevin. However, Mast Global Battery is 1.16 times less risky than Meet Kevin. It trades about 0.02 of its potential returns per unit of risk. The Meet Kevin is currently generating about -0.01 per unit of risk. If you would invest  2,466  in Mast Global Battery on December 25, 2024 and sell it today you would earn a total of  16.00  from holding Mast Global Battery or generate 0.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	73.33%
Values	Daily Returns

Mast Global Battery  vs.  The Meet Kevin

Mast Global Battery

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mast Global Battery are ranked lower than 1 (%) 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.

Meet Kevin

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Mast Global and Meet Kevin

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

The idea behind Mast Global Battery and The Meet Kevin 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 Transaction History module to view history of all your transactions and understand their impact on performance.