Correlation Between MasterBeef Group and TriMas

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

By analyzing existing cross correlation between MasterBeef Group Ordinary and TriMas, you can compare the effects of market volatilities on MasterBeef Group and TriMas 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 MasterBeef Group with a short position of TriMas. Check out your portfolio center. Please also check ongoing floating volatility patterns of MasterBeef Group and TriMas.

Diversification Opportunities for MasterBeef Group and TriMas

0.9

Correlation Coefficient

MasterBeef Group  TriMas

Almost no diversification

The 3 months correlation between MasterBeef and TriMas is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding MasterBeef Group Ordinary and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas and MasterBeef Group 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 MasterBeef Group Ordinary are associated (or correlated) with TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of MasterBeef Group i.e., MasterBeef Group and TriMas go up and down completely randomly.

Pair Corralation between MasterBeef Group and TriMas

Allowing for the 90-day total investment horizon MasterBeef Group Ordinary is expected to generate 4.46 times more return on investment than TriMas. However, MasterBeef Group is 4.46 times more volatile than TriMas. It trades about 0.31 of its potential returns per unit of risk. TriMas is currently generating about 0.31 per unit of risk. If you would invest  320.00  in MasterBeef Group Ordinary on May 1, 2025 and sell it today you would earn a total of  1,090  from holding MasterBeef Group Ordinary or generate 340.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

MasterBeef Group Ordinary  vs.  TriMas

MasterBeef Group Ordinary

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MasterBeef Group Ordinary are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, MasterBeef Group sustained solid returns over the last few months and may actually be approaching a breakup point.

TriMas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TriMas are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TriMas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MasterBeef Group and TriMas

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

The idea behind MasterBeef Group Ordinary and TriMas 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.