Correlation Between Akme Fintrade and Computer Age

Can any of the company-specific risk be diversified away by investing in both Akme Fintrade and Computer Age 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 Akme Fintrade and Computer Age into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akme Fintrade India and Computer Age Management, you can compare the effects of market volatilities on Akme Fintrade and Computer Age 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 Akme Fintrade with a short position of Computer Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akme Fintrade and Computer Age.

Diversification Opportunities for Akme Fintrade and Computer Age

-0.07

Correlation Coefficient

Akme Fintrade  Computer Age

Good diversification

The 3 months correlation between Akme and Computer is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Akme Fintrade India and Computer Age Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Age Management and Akme Fintrade 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 Akme Fintrade India are associated (or correlated) with Computer Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Age Management has no effect on the direction of Akme Fintrade i.e., Akme Fintrade and Computer Age go up and down completely randomly.

Pair Corralation between Akme Fintrade and Computer Age

Assuming the 90 days trading horizon Akme Fintrade India is expected to under-perform the Computer Age. In addition to that, Akme Fintrade is 1.43 times more volatile than Computer Age Management. It trades about -0.12 of its total potential returns per unit of risk. Computer Age Management is currently generating about 0.05 per unit of volatility. If you would invest  449,722  in Computer Age Management on October 11, 2024 and sell it today you would earn a total of  21,073  from holding Computer Age Management or generate 4.69% return on investment over 90 days.

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

Akme Fintrade India  vs.  Computer Age Management

Akme Fintrade India

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akme Fintrade India has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Computer Age Management

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Computer Age Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Computer Age is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Akme Fintrade and Computer Age

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

The idea behind Akme Fintrade India and Computer Age Management 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.