Correlation Between MAS Financial and UTI Asset

Can any of the company-specific risk be diversified away by investing in both MAS Financial and UTI Asset 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 UTI Asset 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 UTI Asset Management, you can compare the effects of market volatilities on MAS Financial and UTI Asset 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 UTI Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Financial and UTI Asset.

Diversification Opportunities for MAS Financial and UTI Asset

0.95

Correlation Coefficient

MAS Financial  UTI Asset

Almost no diversification

The 3 months correlation between MAS and UTI is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial Services and UTI Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Asset Management 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 UTI Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Asset Management has no effect on the direction of MAS Financial i.e., MAS Financial and UTI Asset go up and down completely randomly.

Pair Corralation between MAS Financial and UTI Asset

Assuming the 90 days trading horizon MAS Financial is expected to generate 1.64 times less return on investment than UTI Asset. In addition to that, MAS Financial is 1.02 times more volatile than UTI Asset Management. It trades about 0.15 of its total potential returns per unit of risk. UTI Asset Management is currently generating about 0.25 per unit of volatility. If you would invest  107,500  in UTI Asset Management on April 25, 2025 and sell it today you would earn a total of  39,480  from holding UTI Asset Management or generate 36.73% return on investment over 90 days.

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

MAS Financial Services  vs.  UTI Asset Management

MAS Financial Services

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MAS Financial Services are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady technical and fundamental indicators, MAS Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

UTI Asset Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UTI Asset Management are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, UTI Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MAS Financial and UTI Asset

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

The idea behind MAS Financial Services and UTI Asset Management 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.