Correlation Between Chemcon Speciality and GACM Technologies
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By analyzing existing cross correlation between Chemcon Speciality Chemicals and GACM Technologies Limited, you can compare the effects of market volatilities on Chemcon Speciality 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 Chemcon Speciality with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemcon Speciality and GACM Technologies.
Diversification Opportunities for Chemcon Speciality and GACM Technologies
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chemcon and GACM is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chemcon Speciality Chemicals and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Chemcon Speciality 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 Chemcon Speciality Chemicals 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 Chemcon Speciality i.e., Chemcon Speciality and GACM Technologies go up and down completely randomly.
Pair Corralation between Chemcon Speciality and GACM Technologies
Assuming the 90 days trading horizon Chemcon Speciality Chemicals is expected to generate 0.54 times more return on investment than GACM Technologies. However, Chemcon Speciality Chemicals is 1.87 times less risky than GACM Technologies. It trades about -0.02 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.19 per unit of risk. If you would invest 27,710 in Chemcon Speciality Chemicals on October 23, 2024 and sell it today you would lose (5,449) from holding Chemcon Speciality Chemicals or give up 19.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.1% |
| Values | Daily Returns |
Chemcon Speciality Chemicals vs. GACM Technologies Limited
Performance |
| Timeline |
| Chemcon Speciality |
| GACM Technologies |
Chemcon Speciality and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemcon Speciality and GACM Technologies
The main advantage of trading using opposite Chemcon Speciality and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemcon Speciality 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.| Chemcon Speciality vs. Paramount Communications Limited | Chemcon Speciality vs. Indraprastha Medical | Chemcon Speciality vs. One 97 Communications | Chemcon Speciality vs. Styrenix Performance Materials |
| GACM Technologies vs. Tera Software Limited | GACM Technologies vs. Le Travenues Technology | GACM Technologies vs. Univa Foods Limited | GACM Technologies vs. Kingfa Science Technology |
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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