Correlation Between Vahanna Tech and Target Global

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

By analyzing existing cross correlation between Vahanna Tech Edge and Target Global Acquisition, you can compare the effects of market volatilities on Vahanna Tech and Target Global 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 Vahanna Tech with a short position of Target Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vahanna Tech and Target Global.

Diversification Opportunities for Vahanna Tech and Target Global

0.44

Correlation Coefficient

Vahanna Tech  Target Global

Very weak diversification

The 3 months correlation between Vahanna and Target is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Vahanna Tech Edge and Target Global Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target Global Acquisition and Vahanna Tech 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 Vahanna Tech Edge are associated (or correlated) with Target Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target Global Acquisition has no effect on the direction of Vahanna Tech i.e., Vahanna Tech and Target Global go up and down completely randomly.

Pair Corralation between Vahanna Tech and Target Global

If you would invest  1,128  in Target Global Acquisition on October 10, 2024 and sell it today you would earn a total of  101.00  from holding Target Global Acquisition or generate 8.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	6.67%
Values	Daily Returns

Vahanna Tech Edge  vs.  Target Global Acquisition

Vahanna Tech Edge

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vahanna Tech Edge has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vahanna Tech is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Target Global Acquisition

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Target Global Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, Target Global may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Vahanna Tech and Target Global

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

The idea behind Vahanna Tech Edge and Target Global Acquisition 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..