Correlation Between G Tec and NIIT

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

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

Diversification Opportunities for G Tec and NIIT

0.0

Correlation Coefficient

G Tec  NIIT

Pay attention - limited upside

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

Pair Corralation between G Tec and NIIT

If you would invest  3,615  in G Tec Jainx Education on October 4, 2024 and sell it today you would lose (197.00) from holding G Tec Jainx Education or give up 5.45% of portfolio value over 90 days.

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

G Tec Jainx Education  vs.  NIIT Limited

G Tec Jainx

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

NIIT Limited

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days NIIT Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, NIIT is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with G Tec and NIIT

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

The idea behind G Tec Jainx Education and NIIT Limited 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.