Correlation Between Mast Global and Simplify Volt

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

Diversification Opportunities for Mast Global and Simplify Volt

-0.34

Correlation Coefficient

Mast Global  Simplify Volt

Very good diversification

The 3 months correlation between Mast and Simplify is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Simplify Volt RoboCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Volt RoboCar 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 Simplify Volt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Volt RoboCar has no effect on the direction of Mast Global i.e., Mast Global and Simplify Volt go up and down completely randomly.

Pair Corralation between Mast Global and Simplify Volt

Allowing for the 90-day total investment horizon Mast Global Battery is expected to under-perform the Simplify Volt. But the etf apears to be less risky and, when comparing its historical volatility, Mast Global Battery is 4.86 times less risky than Simplify Volt. The etf trades about -0.08 of its potential returns per unit of risk. The Simplify Volt RoboCar is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,258  in Simplify Volt RoboCar on October 7, 2024 and sell it today you would earn a total of  1,127  from holding Simplify Volt RoboCar or generate 89.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.12%
Values	Daily Returns

Mast Global Battery  vs.  Simplify Volt RoboCar

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.

Simplify Volt RoboCar

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Volt RoboCar are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Simplify Volt reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mast Global and Simplify Volt

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

The idea behind Mast Global Battery and Simplify Volt RoboCar 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.