Correlation Between Aptech and Chemcon Speciality

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

By analyzing existing cross correlation between Aptech Limited and Chemcon Speciality Chemicals, you can compare the effects of market volatilities on Aptech and Chemcon 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 Aptech with a short position of Chemcon Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptech and Chemcon Speciality.

Diversification Opportunities for Aptech and Chemcon Speciality

0.16

Correlation Coefficient

Aptech  Chemcon Speciality

Average diversification

The 3 months correlation between Aptech and Chemcon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aptech Limited and Chemcon Speciality Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemcon Speciality and Aptech 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 Aptech Limited are associated (or correlated) with Chemcon Speciality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemcon Speciality has no effect on the direction of Aptech i.e., Aptech and Chemcon Speciality go up and down completely randomly.

Pair Corralation between Aptech and Chemcon Speciality

Assuming the 90 days trading horizon Aptech is expected to generate 1.11 times less return on investment than Chemcon Speciality. In addition to that, Aptech is 1.47 times more volatile than Chemcon Speciality Chemicals. It trades about 0.07 of its total potential returns per unit of risk. Chemcon Speciality Chemicals is currently generating about 0.12 per unit of volatility. If you would invest  19,627  in Chemcon Speciality Chemicals on April 21, 2025 and sell it today you would earn a total of  3,580  from holding Chemcon Speciality Chemicals or generate 18.24% return on investment over 90 days.

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

Aptech Limited  vs.  Chemcon Speciality Chemicals

Aptech Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aptech Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Aptech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Chemcon Speciality

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chemcon Speciality Chemicals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Chemcon Speciality displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aptech and Chemcon Speciality

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

The idea behind Aptech Limited and Chemcon 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.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.