Correlation Between AAA Technologies and CREDITACCESS GRAMEEN

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

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

Diversification Opportunities for AAA Technologies and CREDITACCESS GRAMEEN

0.42

Correlation Coefficient

AAA Technologies  CREDITACCESS GRAMEEN

Very weak diversification

The 3 months correlation between AAA and CREDITACCESS is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AAA Technologies Limited and CREDITACCESS GRAMEEN LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDITACCESS GRAMEEN and AAA 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 AAA Technologies Limited are associated (or correlated) with CREDITACCESS GRAMEEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDITACCESS GRAMEEN has no effect on the direction of AAA Technologies i.e., AAA Technologies and CREDITACCESS GRAMEEN go up and down completely randomly.

Pair Corralation between AAA Technologies and CREDITACCESS GRAMEEN

Assuming the 90 days trading horizon AAA Technologies Limited is expected to generate 0.94 times more return on investment than CREDITACCESS GRAMEEN. However, AAA Technologies Limited is 1.07 times less risky than CREDITACCESS GRAMEEN. It trades about 0.12 of its potential returns per unit of risk. CREDITACCESS GRAMEEN LIMITED is currently generating about 0.08 per unit of risk. If you would invest  7,925  in AAA Technologies Limited on April 24, 2025 and sell it today you would earn a total of  1,399  from holding AAA Technologies Limited or generate 17.65% return on investment over 90 days.

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

AAA Technologies Limited  vs.  CREDITACCESS GRAMEEN LIMITED

AAA Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AAA Technologies Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical and fundamental indicators, AAA Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

CREDITACCESS GRAMEEN

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CREDITACCESS GRAMEEN LIMITED are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, CREDITACCESS GRAMEEN sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AAA Technologies and CREDITACCESS GRAMEEN

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

The idea behind AAA Technologies Limited and CREDITACCESS GRAMEEN 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.

Check out your portfolio center.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.