Correlation Between Aeries Technology and CleanCore Solutions

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

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

Diversification Opportunities for Aeries Technology and CleanCore Solutions

-0.3

Correlation Coefficient

Aeries Technology  CleanCore Solutions

Very good diversification

The 3 months correlation between Aeries and CleanCore is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aeries Technology and CleanCore Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanCore Solutions 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 CleanCore Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanCore Solutions has no effect on the direction of Aeries Technology i.e., Aeries Technology and CleanCore Solutions go up and down completely randomly.

Pair Corralation between Aeries Technology and CleanCore Solutions

Assuming the 90 days horizon Aeries Technology is expected to generate 1.86 times more return on investment than CleanCore Solutions. However, Aeries Technology is 1.86 times more volatile than CleanCore Solutions. It trades about 0.13 of its potential returns per unit of risk. CleanCore Solutions is currently generating about 0.21 per unit of risk. If you would invest  2.00  in Aeries Technology on April 20, 2025 and sell it today you would earn a total of  0.74  from holding Aeries Technology or generate 37.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	53.23%
Values	Daily Returns

Aeries Technology  vs.  CleanCore Solutions

Aeries Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aeries Technology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Aeries Technology showed solid returns over the last few months and may actually be approaching a breakup point.

CleanCore Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CleanCore Solutions are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CleanCore Solutions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aeries Technology and CleanCore Solutions

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

The idea behind Aeries Technology and CleanCore Solutions 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.