Correlation Between MAS Financial and Rainbow Childrens
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By analyzing existing cross correlation between MAS Financial Services and Rainbow Childrens Medicare, you can compare the effects of market volatilities on MAS Financial and Rainbow Childrens 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 Rainbow Childrens. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Financial and Rainbow Childrens.
Diversification Opportunities for MAS Financial and Rainbow Childrens
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MAS and Rainbow is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial Services and Rainbow Childrens Medicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rainbow Childrens 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 Rainbow Childrens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rainbow Childrens has no effect on the direction of MAS Financial i.e., MAS Financial and Rainbow Childrens go up and down completely randomly.
Pair Corralation between MAS Financial and Rainbow Childrens
Assuming the 90 days trading horizon MAS Financial Services is expected to under-perform the Rainbow Childrens. But the stock apears to be less risky and, when comparing its historical volatility, MAS Financial Services is 1.41 times less risky than Rainbow Childrens. The stock trades about -0.01 of its potential returns per unit of risk. The Rainbow Childrens Medicare is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 149,765 in Rainbow Childrens Medicare on August 28, 2024 and sell it today you would earn a total of 13,620 from holding Rainbow Childrens Medicare or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MAS Financial Services vs. Rainbow Childrens Medicare
Performance |
| Timeline |
| MAS Financial Services |
| Rainbow Childrens |
MAS Financial and Rainbow Childrens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Financial and Rainbow Childrens
The main advantage of trading using opposite MAS Financial and Rainbow Childrens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Financial position performs unexpectedly, Rainbow Childrens 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 Rainbow Childrens will offset losses from the drop in Rainbow Childrens' long position.| MAS Financial vs. Reliance Industries Limited | MAS Financial vs. Life Insurance | MAS Financial vs. Indian Oil | MAS Financial vs. Oil Natural Gas |
| Rainbow Childrens vs. Indian Railway Finance | Rainbow Childrens vs. Cholamandalam Financial Holdings | Rainbow Childrens vs. Reliance Industries Limited | Rainbow Childrens vs. Tata Consultancy Services |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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