Correlation Between Vardhman Holdings and V Mart

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

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

Diversification Opportunities for Vardhman Holdings and V Mart

0.06

Correlation Coefficient

Vardhman Holdings  V Mart

Significant diversification

The 3 months correlation between Vardhman and VMART is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Vardhman Holdings Limited 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 Vardhman Holdings 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 Vardhman Holdings Limited 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 Vardhman Holdings i.e., Vardhman Holdings and V Mart go up and down completely randomly.

Pair Corralation between Vardhman Holdings and V Mart

Assuming the 90 days trading horizon Vardhman Holdings Limited is expected to generate 0.91 times more return on investment than V Mart. However, Vardhman Holdings Limited is 1.1 times less risky than V Mart. It trades about 0.06 of its potential returns per unit of risk. V Mart Retail Limited is currently generating about -0.03 per unit of risk. If you would invest  386,940  in Vardhman Holdings Limited on April 22, 2025 and sell it today you would earn a total of  23,580  from holding Vardhman Holdings Limited or generate 6.09% return on investment over 90 days.

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

Vardhman Holdings Limited  vs.  V Mart Retail Limited

Vardhman Holdings

Risk-Adjusted Performance

Insignificant

Over the last 90 days Vardhman Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak technical and fundamental indicators, Vardhman Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Vardhman Holdings and V Mart

The main advantage of trading using opposite Vardhman Holdings and V Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vardhman Holdings 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 Vardhman Holdings Limited 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..