Correlation Between MAS Financial and Asian Paints
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By analyzing existing cross correlation between MAS Financial Services and Asian Paints Limited, you can compare the effects of market volatilities on MAS Financial and Asian Paints 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 MAS Financial with a short position of Asian Paints. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Financial and Asian Paints.
Diversification Opportunities for MAS Financial and Asian Paints
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MAS and Asian is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial Services and Asian Paints Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Paints Limited and MAS Financial 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 MAS Financial Services are associated (or correlated) with Asian Paints. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Paints Limited has no effect on the direction of MAS Financial i.e., MAS Financial and Asian Paints go up and down completely randomly.
Pair Corralation between MAS Financial and Asian Paints
Assuming the 90 days trading horizon MAS Financial Services is expected to under-perform the Asian Paints. In addition to that, MAS Financial is 1.86 times more volatile than Asian Paints Limited. It trades about -0.21 of its total potential returns per unit of risk. Asian Paints Limited is currently generating about -0.11 per unit of volatility. If you would invest 247,485 in Asian Paints Limited on September 13, 2024 and sell it today you would lose (5,755) from holding Asian Paints Limited or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAS Financial Services vs. Asian Paints Limited
Performance |
| Timeline |
| MAS Financial Services |
| Asian Paints Limited |
MAS Financial and Asian Paints Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Financial and Asian Paints
The main advantage of trading using opposite MAS Financial and Asian Paints positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Financial position performs unexpectedly, Asian Paints 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 Asian Paints will offset losses from the drop in Asian Paints' long position.| MAS Financial vs. Reliance Industries Limited | MAS Financial vs. HDFC Bank Limited | MAS Financial vs. Kingfa Science Technology | MAS Financial vs. Rico Auto Industries |
| Asian Paints vs. Newgen Software Technologies | Asian Paints vs. Nucleus Software Exports | Asian Paints vs. Rajnandini Metal Limited | Asian Paints vs. Ratnamani Metals Tubes |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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