Correlation Between Mastercard and Xiaobai Maimai
Can any of the company-specific risk be diversified away by investing in both Mastercard and Xiaobai Maimai 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 Mastercard and Xiaobai Maimai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and Xiaobai Maimai, you can compare the effects of market volatilities on Mastercard and Xiaobai Maimai 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 Mastercard with a short position of Xiaobai Maimai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and Xiaobai Maimai.
Diversification Opportunities for Mastercard and Xiaobai Maimai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mastercard and Xiaobai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and Xiaobai Maimai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiaobai Maimai and Mastercard 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 Mastercard are associated (or correlated) with Xiaobai Maimai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiaobai Maimai has no effect on the direction of Mastercard i.e., Mastercard and Xiaobai Maimai go up and down completely randomly.
Pair Corralation between Mastercard and Xiaobai Maimai
If you would invest 39,123 in Mastercard on January 24, 2024 and sell it today you would earn a total of 6,552 from holding Mastercard or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mastercard vs. Xiaobai Maimai
Performance |
| Timeline |
| Mastercard |
| Xiaobai Maimai |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mastercard and Xiaobai Maimai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and Xiaobai Maimai
The main advantage of trading using opposite Mastercard and Xiaobai Maimai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, Xiaobai Maimai 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 Xiaobai Maimai will offset losses from the drop in Xiaobai Maimai's long position.| Mastercard vs. American Express | Mastercard vs. Capital One Financial | Mastercard vs. Upstart HoldingsInc | Mastercard vs. Ally Financial |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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