Correlation Between Intrusion and Mastercard

Can any of the company-specific risk be diversified away by investing in both Intrusion and Mastercard 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 Intrusion and Mastercard into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intrusion and Mastercard, you can compare the effects of market volatilities on Intrusion and Mastercard 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 Intrusion with a short position of Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrusion and Mastercard.

Diversification Opportunities for Intrusion and Mastercard

0.03

Correlation Coefficient

Intrusion  Mastercard

Significant diversification

The 3 months correlation between Intrusion and Mastercard is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Intrusion and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard and Intrusion 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 Intrusion are associated (or correlated) with Mastercard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastercard has no effect on the direction of Intrusion i.e., Intrusion and Mastercard go up and down completely randomly.

Pair Corralation between Intrusion and Mastercard

Given the investment horizon of 90 days Intrusion is expected to generate 54.5 times more return on investment than Mastercard. However, Intrusion is 54.5 times more volatile than Mastercard. It trades about 0.14 of its potential returns per unit of risk. Mastercard is currently generating about 0.04 per unit of risk. If you would invest  92.00  in Intrusion on October 9, 2024 and sell it today you would earn a total of  225.00  from holding Intrusion or generate 244.57% return on investment over 90 days.

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

Intrusion  vs.  Mastercard

Intrusion

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.

Mastercard

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mastercard are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Mastercard is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intrusion and Mastercard

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

The idea behind Intrusion and Mastercard 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.