Correlation Between MEDI ASSIST and MAS Financial

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

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

Diversification Opportunities for MEDI ASSIST and MAS Financial

0.52

Correlation Coefficient

MEDI ASSIST  MAS Financial

Very weak diversification

The 3 months correlation between MEDI and MAS is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MEDI ASSIST HEALTHCARE 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 MEDI ASSIST 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 MEDI ASSIST HEALTHCARE 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 MEDI ASSIST i.e., MEDI ASSIST and MAS Financial go up and down completely randomly.

Pair Corralation between MEDI ASSIST and MAS Financial

Assuming the 90 days trading horizon MEDI ASSIST HEALTHCARE is expected to under-perform the MAS Financial. In addition to that, MEDI ASSIST is 1.23 times more volatile than MAS Financial Services. It trades about -0.13 of its total potential returns per unit of risk. MAS Financial Services is currently generating about -0.01 per unit of volatility. If you would invest  26,978  in MAS Financial Services on December 26, 2024 and sell it today you would lose (733.00) from holding MAS Financial Services or give up 2.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

MEDI ASSIST HEALTHCARE  vs.  MAS Financial Services

MEDI ASSIST HEALTHCARE

Risk-Adjusted Performance

Very Weak

Over the last 90 days MEDI ASSIST HEALTHCARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MAS Financial Services

Risk-Adjusted Performance

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 MEDI ASSIST and MAS Financial

The main advantage of trading using opposite MEDI ASSIST and MAS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDI ASSIST 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 MEDI ASSIST HEALTHCARE 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.