Correlation Between AXISCADES Technologies and Hi Tech

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

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

Diversification Opportunities for AXISCADES Technologies and Hi Tech

0.81

Correlation Coefficient

AXISCADES Technologies  Hi Tech

Very poor diversification

The 3 months correlation between AXISCADES and HITECH is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding AXISCADES Technologies Limited and Hi Tech Pipes Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Tech Pipes and AXISCADES 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 AXISCADES Technologies Limited are associated (or correlated) with Hi Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Tech Pipes has no effect on the direction of AXISCADES Technologies i.e., AXISCADES Technologies and Hi Tech go up and down completely randomly.

Pair Corralation between AXISCADES Technologies and Hi Tech

Assuming the 90 days trading horizon AXISCADES Technologies is expected to generate 1.16 times less return on investment than Hi Tech. In addition to that, AXISCADES Technologies is 1.23 times more volatile than Hi Tech Pipes Limited. It trades about 0.07 of its total potential returns per unit of risk. Hi Tech Pipes Limited is currently generating about 0.1 per unit of volatility. If you would invest  8,620  in Hi Tech Pipes Limited on August 26, 2025 and sell it today you would earn a total of  1,275  from holding Hi Tech Pipes Limited or generate 14.79% return on investment over 90 days.

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

AXISCADES Technologies Limited  vs.  Hi Tech Pipes Limited

AXISCADES Technologies

Risk-Adjusted Performance

Mild

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

Hi Tech Pipes

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hi Tech Pipes Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Hi Tech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXISCADES Technologies and Hi Tech

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

The idea behind AXISCADES Technologies Limited and Hi Tech Pipes 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.