Correlation Between VictoryShares THB and Mast Global

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

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

Diversification Opportunities for VictoryShares THB and Mast Global

-0.38

Correlation Coefficient

VictoryShares THB  Mast Global

Very good diversification

The 3 months correlation between VictoryShares and Mast is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding VictoryShares THB Mid and Mast Global Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mast Global Battery and VictoryShares THB 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 VictoryShares THB Mid are associated (or correlated) with Mast Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mast Global Battery has no effect on the direction of VictoryShares THB i.e., VictoryShares THB and Mast Global go up and down completely randomly.

Pair Corralation between VictoryShares THB and Mast Global

Given the investment horizon of 90 days VictoryShares THB Mid is expected to under-perform the Mast Global. But the etf apears to be less risky and, when comparing its historical volatility, VictoryShares THB Mid is 1.18 times less risky than Mast Global. The etf trades about -0.04 of its potential returns per unit of risk. The Mast Global Battery is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,420  in Mast Global Battery on December 29, 2024 and sell it today you would lose (10.00) from holding Mast Global Battery or give up 0.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

VictoryShares THB Mid  vs.  Mast Global Battery

VictoryShares THB Mid

Risk-Adjusted Performance

Very Weak

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

Mast Global Battery

Risk-Adjusted Performance

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 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.

Pair Trading with VictoryShares THB and Mast Global

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

The idea behind VictoryShares THB Mid and Mast Global Battery 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.