Correlation Between Diligent Media and GACM Technologies
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By analyzing existing cross correlation between Diligent Media and GACM Technologies Limited, you can compare the effects of market volatilities on Diligent Media 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 Diligent Media with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diligent Media and GACM Technologies.
Diversification Opportunities for Diligent Media and GACM Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Diligent and GACM is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Diligent Media and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Diligent Media 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 Diligent Media 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 Diligent Media i.e., Diligent Media and GACM Technologies go up and down completely randomly.
Pair Corralation between Diligent Media and GACM Technologies
Assuming the 90 days trading horizon Diligent Media is expected to generate 1.06 times more return on investment than GACM Technologies. However, Diligent Media is 1.06 times more volatile than GACM Technologies Limited. It trades about 0.08 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 425.00 in Diligent Media on October 12, 2024 and sell it today you would earn a total of 211.00 from holding Diligent Media or generate 49.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Diligent Media vs. GACM Technologies Limited
Performance |
| Timeline |
| Diligent Media |
| GACM Technologies |
Diligent Media and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diligent Media and GACM Technologies
The main advantage of trading using opposite Diligent Media and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diligent Media 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.| Diligent Media vs. Shyam Metalics and | Diligent Media vs. Privi Speciality Chemicals | Diligent Media vs. Ankit Metal Power | Diligent Media vs. Manaksia Coated Metals |
| GACM Technologies vs. Karur Vysya Bank | GACM Technologies vs. Diligent Media | GACM Technologies vs. Shemaroo Entertainment Limited | GACM Technologies vs. Spandana Sphoorty Financial |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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