Correlation Between Akme Fintrade and Amines Plasticizers

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

By analyzing existing cross correlation between Akme Fintrade India and Amines Plasticizers Limited, you can compare the effects of market volatilities on Akme Fintrade and Amines Plasticizers 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 Akme Fintrade with a short position of Amines Plasticizers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akme Fintrade and Amines Plasticizers.

Diversification Opportunities for Akme Fintrade and Amines Plasticizers

0.39

Correlation Coefficient

Akme Fintrade  Amines Plasticizers

Weak diversification

The 3 months correlation between Akme and Amines is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Akme Fintrade India and Amines Plasticizers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amines Plasticizers and Akme Fintrade 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 Akme Fintrade India are associated (or correlated) with Amines Plasticizers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amines Plasticizers has no effect on the direction of Akme Fintrade i.e., Akme Fintrade and Amines Plasticizers go up and down completely randomly.

Pair Corralation between Akme Fintrade and Amines Plasticizers

Assuming the 90 days trading horizon Akme Fintrade India is expected to under-perform the Amines Plasticizers. In addition to that, Akme Fintrade is 1.19 times more volatile than Amines Plasticizers Limited. It trades about -0.03 of its total potential returns per unit of risk. Amines Plasticizers Limited is currently generating about 0.05 per unit of volatility. If you would invest  22,405  in Amines Plasticizers Limited on April 24, 2025 and sell it today you would earn a total of  1,355  from holding Amines Plasticizers Limited or generate 6.05% return on investment over 90 days.

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

Akme Fintrade India  vs.  Amines Plasticizers Limited

Akme Fintrade India

Risk-Adjusted Performance

Very Weak

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

Amines Plasticizers

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amines Plasticizers Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Amines Plasticizers may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Akme Fintrade and Amines Plasticizers

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

The idea behind Akme Fintrade India and Amines Plasticizers 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.