Correlation Between EMBASSY OFFICE and GACM Technologies
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By analyzing existing cross correlation between EMBASSY OFFICE PARKS and GACM Technologies Limited, you can compare the effects of market volatilities on EMBASSY OFFICE 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 EMBASSY OFFICE with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBASSY OFFICE and GACM Technologies.
Diversification Opportunities for EMBASSY OFFICE and GACM Technologies
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMBASSY and GACM is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding EMBASSY OFFICE PARKS and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and EMBASSY OFFICE 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 EMBASSY OFFICE PARKS 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 EMBASSY OFFICE i.e., EMBASSY OFFICE and GACM Technologies go up and down completely randomly.
Pair Corralation between EMBASSY OFFICE and GACM Technologies
Assuming the 90 days trading horizon EMBASSY OFFICE PARKS is expected to generate 0.36 times more return on investment than GACM Technologies. However, EMBASSY OFFICE PARKS is 2.81 times less risky than GACM Technologies. It trades about -0.19 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.08 per unit of risk. If you would invest 38,725 in EMBASSY OFFICE PARKS on August 29, 2024 and sell it today you would lose (1,760) from holding EMBASSY OFFICE PARKS or give up 4.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
EMBASSY OFFICE PARKS vs. GACM Technologies Limited
Performance |
| Timeline |
| EMBASSY OFFICE PARKS |
| GACM Technologies |
EMBASSY OFFICE and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBASSY OFFICE and GACM Technologies
The main advantage of trading using opposite EMBASSY OFFICE and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBASSY OFFICE 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.| EMBASSY OFFICE vs. NMDC Limited | EMBASSY OFFICE vs. Embassy Office Parks | EMBASSY OFFICE vs. Gujarat Alkalies and | EMBASSY OFFICE vs. Indian Metals Ferro |
| GACM Technologies vs. Future Retail Limited | GACM Technologies vs. Embassy Office Parks | GACM Technologies vs. General Insurance | GACM Technologies vs. EMBASSY OFFICE PARKS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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