Correlation Between V Mart and Akme Fintrade

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

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

Diversification Opportunities for V Mart and Akme Fintrade

0.12

Correlation Coefficient

V Mart  Akme Fintrade

Average diversification

The 3 months correlation between VMART and Akme is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding V Mart Retail Limited and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and V Mart 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 V Mart Retail Limited are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of V Mart i.e., V Mart and Akme Fintrade go up and down completely randomly.

Pair Corralation between V Mart and Akme Fintrade

Assuming the 90 days trading horizon V Mart Retail Limited is expected to generate 0.68 times more return on investment than Akme Fintrade. However, V Mart Retail Limited is 1.46 times less risky than Akme Fintrade. It trades about -0.02 of its potential returns per unit of risk. Akme Fintrade India is currently generating about -0.04 per unit of risk. If you would invest  81,203  in V Mart Retail Limited on April 21, 2025 and sell it today you would lose (2,468) from holding V Mart Retail Limited or give up 3.04% of portfolio value over 90 days.

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

V Mart Retail Limited  vs.  Akme Fintrade India

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

Akme Fintrade India

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akme Fintrade India has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with V Mart and Akme Fintrade

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

The idea behind V Mart Retail Limited and Akme Fintrade India 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.