Correlation Between Xiaobai Maimai and Mastercard

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Can any of the company-specific risk be diversified away by investing in both Xiaobai Maimai 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 Xiaobai Maimai and Mastercard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiaobai Maimai and Mastercard, you can compare the effects of market volatilities on Xiaobai Maimai 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 Xiaobai Maimai with a short position of Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiaobai Maimai and Mastercard.

Diversification Opportunities for Xiaobai Maimai and Mastercard

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Xiaobai and Mastercard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiaobai Maimai and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard and Xiaobai Maimai 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 Xiaobai Maimai 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 Xiaobai Maimai i.e., Xiaobai Maimai and Mastercard go up and down completely randomly.

Pair Corralation between Xiaobai Maimai and Mastercard

If you would invest  47,475  in Mastercard on December 29, 2023 and sell it today you would earn a total of  320.00  from holding Mastercard or generate 0.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Xiaobai Maimai  vs.  Mastercard

 Performance 
       Timeline  
Xiaobai Maimai 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Xiaobai Maimai has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Xiaobai Maimai is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Mastercard 

Risk-Adjusted Performance

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Good
Compared to the overall equity markets, risk-adjusted returns on investments in Mastercard are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Mastercard sustained solid returns over the last few months and may actually be approaching a breakup point.

Xiaobai Maimai and Mastercard Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xiaobai Maimai and Mastercard

The main advantage of trading using opposite Xiaobai Maimai and Mastercard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiaobai Maimai 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 Xiaobai Maimai 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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