Correlation Between Mask Investments and State Trading

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

By analyzing existing cross correlation between Mask Investments Limited and The State Trading, you can compare the effects of market volatilities on Mask Investments and State Trading 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 Mask Investments with a short position of State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mask Investments and State Trading.

Diversification Opportunities for Mask Investments and State Trading

-0.28

Correlation Coefficient

Mask Investments  State Trading

Very good diversification

The 3 months correlation between Mask and State is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mask Investments Limited and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading and Mask Investments 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 Mask Investments Limited are associated (or correlated) with State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of Mask Investments i.e., Mask Investments and State Trading go up and down completely randomly.

Pair Corralation between Mask Investments and State Trading

Assuming the 90 days trading horizon Mask Investments is expected to generate 56.46 times less return on investment than State Trading. In addition to that, Mask Investments is 1.12 times more volatile than The State Trading. It trades about 0.0 of its total potential returns per unit of risk. The State Trading is currently generating about 0.07 per unit of volatility. If you would invest  12,328  in The State Trading on April 23, 2025 and sell it today you would earn a total of  1,291  from holding The State Trading or generate 10.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Mask Investments Limited  vs.  The State Trading

Mask Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mask Investments Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Mask Investments is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

State Trading

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The State Trading are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental indicators, State Trading may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Mask Investments and State Trading

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

The idea behind Mask Investments Limited and The State Trading 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.