Correlation Between MAS Financial and Hemisphere Properties

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

By analyzing existing cross correlation between MAS Financial Services and Hemisphere Properties India, you can compare the effects of market volatilities on MAS Financial and Hemisphere Properties 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 Hemisphere Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Financial and Hemisphere Properties.

Diversification Opportunities for MAS Financial and Hemisphere Properties

0.4

Correlation Coefficient

MAS Financial  Hemisphere Properties

Very weak diversification

The 3 months correlation between MAS and Hemisphere is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial Services and Hemisphere Properties India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Properties 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 Hemisphere Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Properties has no effect on the direction of MAS Financial i.e., MAS Financial and Hemisphere Properties go up and down completely randomly.

Pair Corralation between MAS Financial and Hemisphere Properties

Assuming the 90 days trading horizon MAS Financial Services is expected to generate 1.14 times more return on investment than Hemisphere Properties. However, MAS Financial is 1.14 times more volatile than Hemisphere Properties India. It trades about 0.16 of its potential returns per unit of risk. Hemisphere Properties India is currently generating about 0.03 per unit of risk. If you would invest  27,692  in MAS Financial Services on April 20, 2025 and sell it today you would earn a total of  6,223  from holding MAS Financial Services or generate 22.47% return on investment over 90 days.

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

MAS Financial Services  vs.  Hemisphere Properties India

MAS Financial Services

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MAS Financial Services are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting technical and fundamental indicators, MAS Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Hemisphere Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hemisphere Properties India are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Hemisphere Properties is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MAS Financial and Hemisphere Properties

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

The idea behind MAS Financial Services and Hemisphere Properties India 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.