Correlation Between Moneygram Int and Mastercard
Can any of the company-specific risk be diversified away by investing in both Moneygram Int 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 Moneygram Int and Mastercard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneygram Int and Mastercard, you can compare the effects of market volatilities on Moneygram Int 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 Moneygram Int with a short position of Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneygram Int and Mastercard.
Diversification Opportunities for Moneygram Int and Mastercard
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Moneygram and Mastercard is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Moneygram Int and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard and Moneygram Int 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 Moneygram Int 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 Moneygram Int i.e., Moneygram Int and Mastercard go up and down completely randomly.
Pair Corralation between Moneygram Int and Mastercard
Considering the 90-day investment horizon Moneygram Int is expected to generate 2.91 times less return on investment than Mastercard. In addition to that, Moneygram Int is 2.02 times more volatile than Mastercard. It trades about 0.02 of its total potential returns per unit of risk. Mastercard is currently generating about 0.1 per unit of volatility. If you would invest 35,089 in Mastercard on January 25, 2024 and sell it today you would earn a total of 11,193 from holding Mastercard or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.22% |
| Values | Daily Returns |
Moneygram Int vs. Mastercard
Performance |
| Timeline |
| Moneygram Int |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mastercard |
Moneygram Int and Mastercard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneygram Int and Mastercard
The main advantage of trading using opposite Moneygram Int and Mastercard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneygram Int 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.| Moneygram Int vs. SLM Corp | Moneygram Int vs. Orix Corp Ads | Moneygram Int vs. FirstCash | Moneygram Int vs. Medallion Financial Corp |
| Mastercard vs. American Express | Mastercard vs. Capital One Financial | Mastercard vs. Upstart HoldingsInc | Mastercard vs. Ally Financial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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