Correlation Between MAS Financial and Compucom Software

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

Diversification Opportunities for MAS Financial and Compucom Software

-0.11

Correlation Coefficient

MAS Financial  Compucom Software

Good diversification

The 3 months correlation between MAS and Compucom is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial Services and Compucom Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compucom Software 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 Compucom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compucom Software has no effect on the direction of MAS Financial i.e., MAS Financial and Compucom Software go up and down completely randomly.

Pair Corralation between MAS Financial and Compucom Software

Assuming the 90 days trading horizon MAS Financial Services is expected to generate 0.76 times more return on investment than Compucom Software. However, MAS Financial Services is 1.32 times less risky than Compucom Software. It trades about 0.07 of its potential returns per unit of risk. Compucom Software Limited is currently generating about -0.05 per unit of risk. If you would invest  29,205  in MAS Financial Services on May 24, 2025 and sell it today you would earn a total of  2,185  from holding MAS Financial Services or generate 7.48% return on investment over 90 days.

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

MAS Financial Services  vs.  Compucom Software Limited

MAS Financial Services

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in MAS Financial Services are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, MAS Financial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Compucom Software

Risk-Adjusted Performance

Weakest

Over the last 90 days Compucom Software Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with MAS Financial and Compucom Software

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

The idea behind MAS Financial Services and Compucom Software Limited 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.