Correlation Between Ami Organics and Ganesh Housing

Can any of the company-specific risk be diversified away by investing in both Ami Organics and Ganesh Housing 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 Ami Organics and Ganesh Housing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ami Organics Limited and Ganesh Housing, you can compare the effects of market volatilities on Ami Organics and Ganesh Housing 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 Ami Organics with a short position of Ganesh Housing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ami Organics and Ganesh Housing.

Diversification Opportunities for Ami Organics and Ganesh Housing

0.0

Correlation Coefficient

Ami Organics  Ganesh Housing

Pay attention - limited upside

The 3 months correlation between Ami and Ganesh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ami Organics Limited and Ganesh Housing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ganesh Housing and Ami Organics 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 Ami Organics Limited are associated (or correlated) with Ganesh Housing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ganesh Housing has no effect on the direction of Ami Organics i.e., Ami Organics and Ganesh Housing go up and down completely randomly.

Pair Corralation between Ami Organics and Ganesh Housing

If you would invest  208,390  in Ami Organics Limited on October 7, 2024 and sell it today you would earn a total of  3,665  from holding Ami Organics Limited or generate 1.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ami Organics Limited  vs.  Ganesh Housing

Ami Organics Limited

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ami Organics Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Ami Organics sustained solid returns over the last few months and may actually be approaching a breakup point.

Ganesh Housing

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Ganesh Housing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Ganesh Housing is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Ami Organics and Ganesh Housing

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

The idea behind Ami Organics Limited and Ganesh Housing 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.

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.