Correlation Between Meet Kevin and Mast Global

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

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

Diversification Opportunities for Meet Kevin and Mast Global

-0.08

Correlation Coefficient

Meet Kevin  Mast Global

Good diversification

The 3 months correlation between Meet and Mast is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding The Meet Kevin 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 Meet Kevin 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 The Meet Kevin 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 Meet Kevin i.e., Meet Kevin and Mast Global go up and down completely randomly.

Pair Corralation between Meet Kevin and Mast Global

Allowing for the 90-day total investment horizon The Meet Kevin is expected to under-perform the Mast Global. In addition to that, Meet Kevin is 1.16 times more volatile than Mast Global Battery. It trades about -0.01 of its total potential returns per unit of risk. Mast Global Battery is currently generating about 0.02 per unit of volatility. 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

The Meet Kevin  vs.  Mast Global Battery

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.

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.

Pair Trading with Meet Kevin and Mast Global

The main advantage of trading using opposite Meet Kevin and Mast Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meet Kevin 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 The Meet Kevin 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.

Check out your portfolio center.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.