Correlation Between Mastercard and Elevate Credit
Can any of the company-specific risk be diversified away by investing in both Mastercard and Elevate Credit 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 Mastercard and Elevate Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and Elevate Credit, you can compare the effects of market volatilities on Mastercard and Elevate Credit 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 Mastercard with a short position of Elevate Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and Elevate Credit.
Diversification Opportunities for Mastercard and Elevate Credit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mastercard and Elevate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and Elevate Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevate Credit and Mastercard 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 Mastercard are associated (or correlated) with Elevate Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevate Credit has no effect on the direction of Mastercard i.e., Mastercard and Elevate Credit go up and down completely randomly.
Pair Corralation between Mastercard and Elevate Credit
If you would invest 43,792 in Mastercard on January 26, 2024 and sell it today you would earn a total of 2,458 from holding Mastercard or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Mastercard vs. Elevate Credit
Performance |
| Timeline |
| Mastercard |
| Elevate Credit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mastercard and Elevate Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and Elevate Credit
The main advantage of trading using opposite Mastercard and Elevate Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, Elevate Credit 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 Elevate Credit will offset losses from the drop in Elevate Credit's long position.| Mastercard vs. American Express | Mastercard vs. Capital One Financial | Mastercard vs. Upstart HoldingsInc | Mastercard vs. Ally Financial |
| Elevate Credit vs. Maiden Holdings | Elevate Credit vs. NI Holdings | Elevate Credit vs. QBE Insurance Group | Elevate Credit vs. National Western Life |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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