Correlation Between Metalyst Forgings and MAS Financial

Can any of the company-specific risk be diversified away by investing in both Metalyst Forgings and MAS Financial 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 Metalyst Forgings and MAS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Metalyst Forgings Limited and MAS Financial Services, you can compare the effects of market volatilities on Metalyst Forgings and MAS Financial 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 Metalyst Forgings with a short position of MAS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalyst Forgings and MAS Financial.

Diversification Opportunities for Metalyst Forgings and MAS Financial

0.0

Correlation Coefficient

Metalyst Forgings  MAS Financial

Pay attention - limited upside

The 3 months correlation between Metalyst and MAS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metalyst Forgings Limited and MAS Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAS Financial Services and Metalyst Forgings 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 Metalyst Forgings Limited are associated (or correlated) with MAS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAS Financial Services has no effect on the direction of Metalyst Forgings i.e., Metalyst Forgings and MAS Financial go up and down completely randomly.

Pair Corralation between Metalyst Forgings and MAS Financial

If you would invest  405.00  in Metalyst Forgings Limited on September 27, 2024 and sell it today you would earn a total of  0.00  from holding Metalyst Forgings Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Metalyst Forgings Limited  vs.  MAS Financial Services

Metalyst Forgings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Metalyst Forgings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Metalyst Forgings is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

MAS Financial Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAS Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, MAS Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Metalyst Forgings and MAS Financial

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

The idea behind Metalyst Forgings Limited and MAS Financial Services 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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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.