Correlation Between Mast Global and Horizon Kinetics

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

Diversification Opportunities for Mast Global and Horizon Kinetics

-0.54

Correlation Coefficient

Mast Global  Horizon Kinetics

Excellent diversification

The 3 months correlation between Mast and Horizon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Horizon Kinetics SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics SPAC 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 Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics SPAC has no effect on the direction of Mast Global i.e., Mast Global and Horizon Kinetics go up and down completely randomly.

Pair Corralation between Mast Global and Horizon Kinetics

Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Horizon Kinetics. In addition to that, Mast Global is 7.88 times more volatile than Horizon Kinetics SPAC. It trades about -0.12 of its total potential returns per unit of risk. Horizon Kinetics SPAC is currently generating about 0.03 per unit of volatility. If you would invest  9,801  in Horizon Kinetics SPAC on October 6, 2024 and sell it today you would earn a total of  23.00  from holding Horizon Kinetics SPAC or generate 0.23% return on investment over 90 days.

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

Mast Global Battery  vs.  Horizon Kinetics SPAC

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.

Horizon Kinetics SPAC

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Kinetics SPAC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Horizon Kinetics 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 Horizon Kinetics

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

The idea behind Mast Global Battery and Horizon Kinetics SPAC 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.