Correlation Between Apex Frozen and V Mart

Can any of the company-specific risk be diversified away by investing in both Apex Frozen and V Mart 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 Apex Frozen and V Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apex Frozen Foods and V Mart Retail Limited, you can compare the effects of market volatilities on Apex Frozen and V Mart 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 Apex Frozen with a short position of V Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Frozen and V Mart.

Diversification Opportunities for Apex Frozen and V Mart

-0.06

Correlation Coefficient

Apex Frozen  V Mart

Good diversification

The 3 months correlation between Apex and VMART is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Apex Frozen Foods and V Mart Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V Mart Retail and Apex Frozen 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 Apex Frozen Foods are associated (or correlated) with V Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V Mart Retail has no effect on the direction of Apex Frozen i.e., Apex Frozen and V Mart go up and down completely randomly.

Pair Corralation between Apex Frozen and V Mart

Assuming the 90 days trading horizon Apex Frozen Foods is expected to generate 1.04 times more return on investment than V Mart. However, Apex Frozen is 1.04 times more volatile than V Mart Retail Limited. It trades about 0.11 of its potential returns per unit of risk. V Mart Retail Limited is currently generating about -0.02 per unit of risk. If you would invest  21,790  in Apex Frozen Foods on April 20, 2025 and sell it today you would earn a total of  2,926  from holding Apex Frozen Foods or generate 13.43% return on investment over 90 days.

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

Apex Frozen Foods  vs.  V Mart Retail Limited

Apex Frozen Foods

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Frozen Foods are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Apex Frozen unveiled solid returns over the last few months and may actually be approaching a breakup point.

V Mart Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days V Mart Retail Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, V Mart is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Apex Frozen and V Mart

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

The idea behind Apex Frozen Foods and V Mart Retail 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.