Correlation Between Aptech and G Tec

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

By analyzing existing cross correlation between Aptech Limited and G Tec Jainx Education, you can compare the effects of market volatilities on Aptech and G Tec 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 G Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptech and G Tec.

Diversification Opportunities for Aptech and G Tec

0.79

Correlation Coefficient

Aptech  G Tec

Poor diversification

The 3 months correlation between Aptech and GTECJAINX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aptech Limited and G Tec Jainx Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Tec Jainx 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 G Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Tec Jainx has no effect on the direction of Aptech i.e., Aptech and G Tec go up and down completely randomly.

Pair Corralation between Aptech and G Tec

Assuming the 90 days trading horizon Aptech Limited is expected to under-perform the G Tec. In addition to that, Aptech is 1.2 times more volatile than G Tec Jainx Education. It trades about -0.21 of its total potential returns per unit of risk. G Tec Jainx Education is currently generating about -0.06 per unit of volatility. If you would invest  3,420  in G Tec Jainx Education on December 2, 2024 and sell it today you would lose (393.00) from holding G Tec Jainx Education or give up 11.49% of portfolio value over 90 days.

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

Aptech Limited  vs.  G Tec Jainx Education

Aptech Limited

Risk-Adjusted Performance

Very Weak

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

G Tec Jainx

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Tec Jainx Education has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Aptech and G Tec

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

The idea behind Aptech Limited and G Tec Jainx Education 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.