Correlation Between HMT and Aptech
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By analyzing existing cross correlation between HMT Limited and Aptech Limited, you can compare the effects of market volatilities on HMT and Aptech 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 HMT with a short position of Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMT and Aptech.
Diversification Opportunities for HMT and Aptech
Almost no diversification
The 3 months correlation between HMT and Aptech is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding HMT Limited and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited and HMT 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 HMT Limited are associated (or correlated) with Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of HMT i.e., HMT and Aptech go up and down completely randomly.
Pair Corralation between HMT and Aptech
Assuming the 90 days trading horizon HMT Limited is expected to under-perform the Aptech. But the stock apears to be less risky and, when comparing its historical volatility, HMT Limited is 1.12 times less risky than Aptech. The stock trades about -0.16 of its potential returns per unit of risk. The Aptech Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 17,505 in Aptech Limited on September 4, 2024 and sell it today you would earn a total of 62.00 from holding Aptech Limited or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMT Limited vs. Aptech Limited
Performance |
| Timeline |
| HMT Limited |
| Aptech Limited |
HMT and Aptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMT and Aptech
The main advantage of trading using opposite HMT and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMT position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech's long position.| HMT vs. Blue Jet Healthcare | HMT vs. Univa Foods Limited | HMT vs. Bikaji Foods International | HMT vs. Mrs Bectors Food |
| Aptech vs. HMT Limited | Aptech vs. KIOCL Limited | Aptech vs. Spentex Industries Limited | Aptech vs. Punjab Sind Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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