Correlation Between G Tec and Omkar Speciality

Can any of the company-specific risk be diversified away by investing in both G Tec 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 G Tec and Omkar Speciality 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 Omkar Speciality Chemicals, you can compare the effects of market volatilities on G Tec 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 G Tec with a short position of Omkar Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Tec and Omkar Speciality.

Diversification Opportunities for G Tec and Omkar Speciality

-0.14

Correlation Coefficient

G Tec  Omkar Speciality

Good diversification

The 3 months correlation between GTECJAINX and Omkar is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding G Tec Jainx Education 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 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 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 G Tec i.e., G Tec and Omkar Speciality go up and down completely randomly.

Pair Corralation between G Tec and Omkar Speciality

Assuming the 90 days trading horizon G Tec Jainx Education is expected to under-perform the Omkar Speciality. But the stock apears to be less risky and, when comparing its historical volatility, G Tec Jainx Education is 1.08 times less risky than Omkar Speciality. The stock trades about -0.29 of its potential returns per unit of risk. The Omkar Speciality Chemicals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  929.00  in Omkar Speciality Chemicals on September 3, 2024 and sell it today you would lose (15.00) from holding Omkar Speciality Chemicals or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

G Tec Jainx Education  vs.  Omkar Speciality Chemicals

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

Omkar Speciality Che

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Omkar Speciality Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Omkar Speciality is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with G Tec and Omkar Speciality

The main advantage of trading using opposite G Tec and Omkar Speciality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Tec 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 G Tec Jainx Education 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.