Correlation Between IShares Exponential and Mast Global

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

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

Diversification Opportunities for IShares Exponential and Mast Global

0.37

Correlation Coefficient

IShares Exponential  Mast Global

Weak diversification

The 3 months correlation between IShares and Mast is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding iShares Exponential Technologi 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 IShares Exponential 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 iShares Exponential Technologies 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 IShares Exponential i.e., IShares Exponential and Mast Global go up and down completely randomly.

Pair Corralation between IShares Exponential and Mast Global

Allowing for the 90-day total investment horizon iShares Exponential Technologies is expected to generate 0.84 times more return on investment than Mast Global. However, iShares Exponential Technologies is 1.19 times less risky than Mast Global. It trades about 0.04 of its potential returns per unit of risk. Mast Global Battery is currently generating about 0.0 per unit of risk. If you would invest  5,397  in iShares Exponential Technologies on October 24, 2024 and sell it today you would earn a total of  829.00  from holding iShares Exponential Technologies or generate 15.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	65.94%
Values	Daily Returns

iShares Exponential Technologi  vs.  Mast Global Battery

iShares Exponential

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Exponential Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, IShares Exponential is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with IShares Exponential and Mast Global

The main advantage of trading using opposite IShares Exponential and Mast Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Exponential 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 iShares Exponential Technologies 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.