Correlation Between Cartrade Tech and GACM Technologies
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By analyzing existing cross correlation between Cartrade Tech Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Cartrade Tech and GACM 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 Cartrade Tech with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartrade Tech and GACM Technologies.
Diversification Opportunities for Cartrade Tech and GACM Technologies
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cartrade and GACM is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cartrade Tech Limited and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Cartrade Tech 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 Cartrade Tech Limited are associated (or correlated) with GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of Cartrade Tech i.e., Cartrade Tech and GACM Technologies go up and down completely randomly.
Pair Corralation between Cartrade Tech and GACM Technologies
Assuming the 90 days trading horizon Cartrade Tech Limited is expected to generate 0.77 times more return on investment than GACM Technologies. However, Cartrade Tech Limited is 1.29 times less risky than GACM Technologies. It trades about 0.13 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.18 per unit of risk. If you would invest 80,975 in Cartrade Tech Limited on September 3, 2024 and sell it today you would earn a total of 54,585 from holding Cartrade Tech Limited or generate 67.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
Cartrade Tech Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Cartrade Tech Limited |
| GACM Technologies |
Cartrade Tech and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cartrade Tech and GACM Technologies
The main advantage of trading using opposite Cartrade Tech and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartrade Tech position performs unexpectedly, GACM 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 GACM Technologies will offset losses from the drop in GACM Technologies' long position.| Cartrade Tech vs. Bajaj Holdings Investment | Cartrade Tech vs. Shipping | Cartrade Tech vs. Indo Borax Chemicals | Cartrade Tech vs. Kingfa Science Technology |
| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | GACM Technologies vs. Compucom Software Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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