Correlation Between Aeries Technology and Thomson Reuters

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

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

Diversification Opportunities for Aeries Technology and Thomson Reuters

-0.33

Correlation Coefficient

Aeries Technology  Thomson Reuters

Very good diversification

The 3 months correlation between Aeries and Thomson is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aeries Technology and Thomson Reuters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thomson Reuters and Aeries Technology 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 Aeries Technology are associated (or correlated) with Thomson Reuters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thomson Reuters has no effect on the direction of Aeries Technology i.e., Aeries Technology and Thomson Reuters go up and down completely randomly.

Pair Corralation between Aeries Technology and Thomson Reuters

Assuming the 90 days horizon Aeries Technology is expected to generate 12.12 times more return on investment than Thomson Reuters. However, Aeries Technology is 12.12 times more volatile than Thomson Reuters. It trades about 0.16 of its potential returns per unit of risk. Thomson Reuters is currently generating about 0.1 per unit of risk. If you would invest  2.04  in Aeries Technology on May 4, 2025 and sell it today you would earn a total of  1.29  from holding Aeries Technology or generate 63.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	54.84%
Values	Daily Returns

Aeries Technology  vs.  Thomson Reuters

Aeries Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aeries Technology are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Aeries Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Thomson Reuters

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thomson Reuters are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Thomson Reuters may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Aeries Technology and Thomson Reuters

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

The idea behind Aeries Technology and Thomson Reuters 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.