Correlation Between Aptech and HMT
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By analyzing existing cross correlation between Aptech Limited and HMT Limited, you can compare the effects of market volatilities on Aptech and HMT 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 Aptech with a short position of HMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptech and HMT.
Diversification Opportunities for Aptech and HMT
Almost no diversification
The 3 months correlation between Aptech and HMT is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aptech Limited and HMT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMT Limited and Aptech 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 Aptech Limited are associated (or correlated) with HMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMT Limited has no effect on the direction of Aptech i.e., Aptech and HMT go up and down completely randomly.
Pair Corralation between Aptech and HMT
Assuming the 90 days trading horizon Aptech Limited is expected to generate 0.7 times more return on investment than HMT. However, Aptech Limited is 1.43 times less risky than HMT. It trades about 0.1 of its potential returns per unit of risk. HMT Limited is currently generating about -0.03 per unit of risk. If you would invest 17,140 in Aptech Limited on September 12, 2024 and sell it today you would earn a total of 599.00 from holding Aptech Limited or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptech Limited vs. HMT Limited
Performance |
| Timeline |
| Aptech Limited |
| HMT Limited |
Aptech and HMT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptech and HMT
The main advantage of trading using opposite Aptech and HMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptech position performs unexpectedly, HMT 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 HMT will offset losses from the drop in HMT's long position.| Aptech vs. Hemisphere Properties India | Aptech vs. Indo Borax Chemicals | Aptech vs. Kingfa Science Technology | Aptech vs. Alkali Metals Limited |
| HMT vs. Praxis Home Retail | HMT vs. Lakshmi Finance Industrial | HMT vs. Agarwal Industrial | HMT vs. NRB Industrial Bearings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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