Correlation Between Aeries Technology and Intelligent Group
Can any of the company-specific risk be diversified away by investing in both Aeries Technology and Intelligent Group 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 Aeries Technology and Intelligent Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeries Technology and Intelligent Group Limited, you can compare the effects of market volatilities on Aeries Technology and Intelligent Group 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 Aeries Technology with a short position of Intelligent Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeries Technology and Intelligent Group.
Diversification Opportunities for Aeries Technology and Intelligent Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aeries and Intelligent is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aeries Technology and Intelligent Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Group and Aeries Technology 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 Aeries Technology are associated (or correlated) with Intelligent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Group has no effect on the direction of Aeries Technology i.e., Aeries Technology and Intelligent Group go up and down completely randomly.
Pair Corralation between Aeries Technology and Intelligent Group
Given the investment horizon of 90 days Aeries Technology is expected to under-perform the Intelligent Group. In addition to that, Aeries Technology is 1.43 times more volatile than Intelligent Group Limited. It trades about -0.26 of its total potential returns per unit of risk. Intelligent Group Limited is currently generating about 0.14 per unit of volatility. If you would invest 90.00 in Intelligent Group Limited on September 12, 2024 and sell it today you would earn a total of 12.80 from holding Intelligent Group Limited or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aeries Technology vs. Intelligent Group Limited
Performance |
| Timeline |
| Aeries Technology |
| Intelligent Group |
Aeries Technology and Intelligent Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeries Technology and Intelligent Group
The main advantage of trading using opposite Aeries Technology and Intelligent Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeries Technology position performs unexpectedly, Intelligent Group 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 Intelligent Group will offset losses from the drop in Intelligent Group's long position.| Aeries Technology vs. CRA International | Aeries Technology vs. ICF International | Aeries Technology vs. Forrester Research | Aeries Technology vs. Huron Consulting Group |
| Intelligent Group vs. SBC Medical Group | Intelligent Group vs. GreenPro Capital Corp | Intelligent Group vs. Roma Green Finance | Intelligent Group vs. Aeries Technology |
Check out your portfolio center.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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