Correlation Between DiGiSPICE Technologies and Omkar Speciality

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

By analyzing existing cross correlation between DiGiSPICE Technologies Limited and Omkar Speciality Chemicals, you can compare the effects of market volatilities on DiGiSPICE Technologies and Omkar Speciality 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 DiGiSPICE Technologies with a short position of Omkar Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of DiGiSPICE Technologies and Omkar Speciality.

Diversification Opportunities for DiGiSPICE Technologies and Omkar Speciality

-0.19

Correlation Coefficient

DiGiSPICE Technologies  Omkar Speciality

Good diversification

The 3 months correlation between DiGiSPICE and Omkar is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DiGiSPICE Technologies Limited and Omkar Speciality Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omkar Speciality Che and DiGiSPICE Technologies 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 DiGiSPICE Technologies Limited are associated (or correlated) with Omkar Speciality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omkar Speciality Che has no effect on the direction of DiGiSPICE Technologies i.e., DiGiSPICE Technologies and Omkar Speciality go up and down completely randomly.

Pair Corralation between DiGiSPICE Technologies and Omkar Speciality

Assuming the 90 days trading horizon DiGiSPICE Technologies is expected to generate 2.09 times less return on investment than Omkar Speciality. But when comparing it to its historical volatility, DiGiSPICE Technologies Limited is 1.04 times less risky than Omkar Speciality. It trades about 0.02 of its potential returns per unit of risk. Omkar Speciality Chemicals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  813.00  in Omkar Speciality Chemicals on October 25, 2024 and sell it today you would earn a total of  44.00  from holding Omkar Speciality Chemicals or generate 5.41% return on investment over 90 days.

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

DiGiSPICE Technologies Limited  vs.  Omkar Speciality Chemicals

DiGiSPICE Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DiGiSPICE Technologies Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, DiGiSPICE Technologies is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Omkar Speciality Che

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Omkar Speciality Chemicals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain technical indicators, Omkar Speciality may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with DiGiSPICE Technologies and Omkar Speciality

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

The idea behind DiGiSPICE Technologies Limited and Omkar Speciality Chemicals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..