Correlation Between AXISCADES Technologies and Ankit Metal

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

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

Diversification Opportunities for AXISCADES Technologies and Ankit Metal

0.15

Correlation Coefficient

AXISCADES Technologies  Ankit Metal

Average diversification

The 3 months correlation between AXISCADES and Ankit is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AXISCADES Technologies Limited and Ankit Metal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankit Metal Power and AXISCADES 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 AXISCADES Technologies Limited are associated (or correlated) with Ankit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankit Metal Power has no effect on the direction of AXISCADES Technologies i.e., AXISCADES Technologies and Ankit Metal go up and down completely randomly.

Pair Corralation between AXISCADES Technologies and Ankit Metal

Assuming the 90 days trading horizon AXISCADES Technologies is expected to generate 1.69 times less return on investment than Ankit Metal. In addition to that, AXISCADES Technologies is 1.12 times more volatile than Ankit Metal Power. It trades about 0.02 of its total potential returns per unit of risk. Ankit Metal Power is currently generating about 0.04 per unit of volatility. If you would invest  361.00  in Ankit Metal Power on September 16, 2024 and sell it today you would earn a total of  19.00  from holding Ankit Metal Power or generate 5.26% return on investment over 90 days.

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

AXISCADES Technologies Limited  vs.  Ankit Metal Power

AXISCADES Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AXISCADES Technologies Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, AXISCADES Technologies is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ankit Metal Power

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ankit Metal Power are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ankit Metal may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AXISCADES Technologies and Ankit Metal

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

The idea behind AXISCADES Technologies Limited and Ankit Metal Power 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.