Correlation Between Mast Global and KraneShares Artificial

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

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

Diversification Opportunities for Mast Global and KraneShares Artificial

0.0

Correlation Coefficient

Mast Global  KraneShares Artificial

Pay attention - limited upside

The 3 months correlation between Mast and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and KraneShares Artificial Intelli in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Artificial and Mast Global 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 Mast Global Battery are associated (or correlated) with KraneShares Artificial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Artificial has no effect on the direction of Mast Global i.e., Mast Global and KraneShares Artificial go up and down completely randomly.

Pair Corralation between Mast Global and KraneShares Artificial

If you would invest  2,334  in Mast Global Battery on September 12, 2024 and sell it today you would earn a total of  237.00  from holding Mast Global Battery or generate 10.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Mast Global Battery  vs.  KraneShares Artificial Intelli

Mast Global Battery

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mast Global Battery are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Mast Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

KraneShares Artificial

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days KraneShares Artificial Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, KraneShares Artificial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mast Global and KraneShares Artificial

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

The idea behind Mast Global Battery and KraneShares Artificial Intelligence 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..