Correlation Between Kibush Capital and Mastercard

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Can any of the company-specific risk be diversified away by investing in both Kibush Capital 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 Kibush Capital and Mastercard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kibush Capital Corp and Mastercard, you can compare the effects of market volatilities on Kibush Capital 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 Kibush Capital with a short position of Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kibush Capital and Mastercard.

Diversification Opportunities for Kibush Capital and Mastercard

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kibush and Mastercard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kibush Capital Corp and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard and Kibush Capital 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 Kibush Capital Corp 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 Kibush Capital i.e., Kibush Capital and Mastercard go up and down completely randomly.

Pair Corralation between Kibush Capital and Mastercard

If you would invest  32,818  in Mastercard on September 1, 2022 and sell it today you would earn a total of  2,238  from holding Mastercard or generate 6.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Kibush Capital Corp  vs.  Mastercard

 Performance (%) 
       Timeline  
Kibush Capital Corp 
Kibush Performance
0 of 100
Over the last 90 days Kibush Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Kibush Capital is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Mastercard 
Mastercard Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Mastercard are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mastercard may actually be approaching a critical reversion point that can send shares even higher in December 2022.

Mastercard Price Channel

Kibush Capital and Mastercard Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kibush Capital and Mastercard

The main advantage of trading using opposite Kibush Capital and Mastercard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kibush Capital 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.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Kibush Capital as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Kibush Capital's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Kibush Capital's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Kibush Capital Corp.
The idea behind Kibush Capital Corp and Mastercard 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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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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