Correlation Between Aptech and Investment Trust
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By analyzing existing cross correlation between Aptech Limited and The Investment Trust, you can compare the effects of market volatilities on Aptech and Investment Trust 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 Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptech and Investment Trust.
Diversification Opportunities for Aptech and Investment Trust
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aptech and Investment is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aptech Limited and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust 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 Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Aptech i.e., Aptech and Investment Trust go up and down completely randomly.
Pair Corralation between Aptech and Investment Trust
Assuming the 90 days trading horizon Aptech Limited is expected to generate 1.14 times more return on investment than Investment Trust. However, Aptech is 1.14 times more volatile than The Investment Trust. It trades about -0.14 of its potential returns per unit of risk. The Investment Trust is currently generating about -0.21 per unit of risk. If you would invest 17,274 in Aptech Limited on November 5, 2024 and sell it today you would lose (1,510) from holding Aptech Limited or give up 8.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptech Limited vs. The Investment Trust
Performance |
| Timeline |
| Aptech Limited |
| Investment Trust |
Aptech and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptech and Investment Trust
The main advantage of trading using opposite Aptech and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptech position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Aptech vs. MIC Electronics Limited | Aptech vs. Hindustan Construction | Aptech vs. Garuda Construction Engineering | Aptech vs. Silgo Retail Limited |
| Investment Trust vs. Reliance Industries Limited | Investment Trust vs. Oil Natural Gas | Investment Trust vs. ICICI Bank Limited | Investment Trust vs. Bharti Airtel Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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