Correlation Between Mtar Technologies and Aptech

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

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

Diversification Opportunities for Mtar Technologies and Aptech

0.44

Correlation Coefficient

Mtar Technologies  Aptech

Very weak diversification

The 3 months correlation between Mtar and Aptech is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mtar Technologies Limited and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited and Mtar 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 Mtar Technologies Limited are associated (or correlated) with Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of Mtar Technologies i.e., Mtar Technologies and Aptech go up and down completely randomly.

Pair Corralation between Mtar Technologies and Aptech

Assuming the 90 days trading horizon Mtar Technologies is expected to generate 1.57 times less return on investment than Aptech. But when comparing it to its historical volatility, Mtar Technologies Limited is 2.19 times less risky than Aptech. It trades about 0.09 of its potential returns per unit of risk. Aptech Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  12,783  in Aptech Limited on April 22, 2025 and sell it today you would earn a total of  1,471  from holding Aptech Limited or generate 11.51% return on investment over 90 days.

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

Mtar Technologies Limited  vs.  Aptech Limited

Mtar Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mtar Technologies Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Mtar Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 weak fundamental indicators, Aptech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mtar Technologies and Aptech

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

The idea behind Mtar Technologies Limited and Aptech 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.