Correlation Between Aptitude Software and Hansa Investment

Can any of the company-specific risk be diversified away by investing in both Aptitude Software and Hansa Investment 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 Aptitude Software and Hansa Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aptitude Software Group and Hansa Investment, you can compare the effects of market volatilities on Aptitude Software and Hansa Investment 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 Aptitude Software with a short position of Hansa Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptitude Software and Hansa Investment.

Diversification Opportunities for Aptitude Software and Hansa Investment

0.78

Correlation Coefficient

Aptitude Software  Hansa Investment

Poor diversification

The 3 months correlation between Aptitude and Hansa is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aptitude Software Group and Hansa Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Investment and Aptitude Software 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 Aptitude Software Group are associated (or correlated) with Hansa Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Investment has no effect on the direction of Aptitude Software i.e., Aptitude Software and Hansa Investment go up and down completely randomly.

Pair Corralation between Aptitude Software and Hansa Investment

Assuming the 90 days trading horizon Aptitude Software is expected to generate 6.53 times less return on investment than Hansa Investment. In addition to that, Aptitude Software is 1.24 times more volatile than Hansa Investment. It trades about 0.01 of its total potential returns per unit of risk. Hansa Investment is currently generating about 0.09 per unit of volatility. If you would invest  23,200  in Hansa Investment on April 20, 2025 and sell it today you would earn a total of  1,800  from holding Hansa Investment or generate 7.76% return on investment over 90 days.

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

Aptitude Software Group  vs.  Hansa Investment

Aptitude Software

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aptitude Software Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Aptitude Software is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Hansa Investment

Risk-Adjusted Performance

OK

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

Pair Trading with Aptitude Software and Hansa Investment

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

The idea behind Aptitude Software Group and Hansa Investment 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.