Correlation Between V Mart and DiGiSPICE Technologies

Can any of the company-specific risk be diversified away by investing in both V Mart and DiGiSPICE Technologies 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 DiGiSPICE Technologies 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 DiGiSPICE Technologies Limited, you can compare the effects of market volatilities on V Mart and DiGiSPICE Technologies 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 DiGiSPICE Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of V Mart and DiGiSPICE Technologies.

Diversification Opportunities for V Mart and DiGiSPICE Technologies

0.29

Correlation Coefficient

V Mart  DiGiSPICE Technologies

Modest diversification

The 3 months correlation between VMART and DiGiSPICE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding V Mart Retail Limited and DiGiSPICE Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DiGiSPICE Technologies 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 DiGiSPICE Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DiGiSPICE Technologies has no effect on the direction of V Mart i.e., V Mart and DiGiSPICE Technologies go up and down completely randomly.

Pair Corralation between V Mart and DiGiSPICE Technologies

Assuming the 90 days trading horizon V Mart Retail Limited is expected to under-perform the DiGiSPICE Technologies. But the stock apears to be less risky and, when comparing its historical volatility, V Mart Retail Limited is 1.77 times less risky than DiGiSPICE Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The DiGiSPICE Technologies Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,021  in DiGiSPICE Technologies Limited on April 22, 2025 and sell it today you would earn a total of  193.00  from holding DiGiSPICE Technologies Limited or generate 9.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

V Mart Retail Limited  vs.  DiGiSPICE Technologies Limited

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.

DiGiSPICE Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DiGiSPICE Technologies Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, DiGiSPICE Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with V Mart and DiGiSPICE Technologies

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

The idea behind V Mart Retail Limited and DiGiSPICE Technologies 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.