Correlation Between Tarapur Transformers and Aptech

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Can any of the company-specific risk be diversified away by investing in both Tarapur Transformers and Aptech 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 Tarapur Transformers and Aptech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tarapur Transformers Limited and Aptech Limited, you can compare the effects of market volatilities on Tarapur Transformers and Aptech 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 Tarapur Transformers with a short position of Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tarapur Transformers and Aptech.

Diversification Opportunities for Tarapur Transformers and Aptech

-0.92
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Tarapur and Aptech is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tarapur Transformers Limited and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited and Tarapur Transformers 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 Tarapur Transformers Limited are associated (or correlated) with Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of Tarapur Transformers i.e., Tarapur Transformers and Aptech go up and down completely randomly.

Pair Corralation between Tarapur Transformers and Aptech

Assuming the 90 days trading horizon Tarapur Transformers Limited is expected to generate 3.47 times more return on investment than Aptech. However, Tarapur Transformers is 3.47 times more volatile than Aptech Limited. It trades about 0.19 of its potential returns per unit of risk. Aptech Limited is currently generating about -0.29 per unit of risk. If you would invest  2,274  in Tarapur Transformers Limited on September 2, 2025 and sell it today you would earn a total of  1,364  from holding Tarapur Transformers Limited or generate 59.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Tarapur Transformers Limited  vs.  Aptech Limited

 Performance 
       Timeline  
Tarapur Transformers 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tarapur Transformers Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Tarapur Transformers reported solid returns over the last few months and may actually be approaching a breakup point.
Aptech Limited 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Aptech Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Tarapur Transformers and Aptech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tarapur Transformers and Aptech

The main advantage of trading using opposite Tarapur Transformers and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tarapur Transformers position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech's long position.
The idea behind Tarapur Transformers Limited and Aptech 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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