Correlation Between Federal Bank and GACM Technologies
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By analyzing existing cross correlation between The Federal Bank and GACM Technologies Limited, you can compare the effects of market volatilities on Federal Bank 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 Federal Bank with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Bank and GACM Technologies.
Diversification Opportunities for Federal Bank and GACM Technologies
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federal and GACM is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Federal Bank and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Federal Bank 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 The Federal Bank 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 Federal Bank i.e., Federal Bank and GACM Technologies go up and down completely randomly.
Pair Corralation between Federal Bank and GACM Technologies
Assuming the 90 days trading horizon The Federal Bank is expected to generate 0.44 times more return on investment than GACM Technologies. However, The Federal Bank is 2.26 times less risky than GACM Technologies. It trades about 0.09 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.21 per unit of risk. If you would invest 12,684 in The Federal Bank on August 31, 2024 and sell it today you would earn a total of 8,421 from holding The Federal Bank or generate 66.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.66% |
| Values | Daily Returns |
The Federal Bank vs. GACM Technologies Limited
Performance |
| Timeline |
| Federal Bank |
| GACM Technologies |
Federal Bank and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Bank and GACM Technologies
The main advantage of trading using opposite Federal Bank and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Bank 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.| Federal Bank vs. Shree Pushkar Chemicals | Federal Bank vs. Tamilnadu Telecommunication Limited | Federal Bank vs. Sumitomo Chemical India | Federal Bank vs. Sukhjit Starch Chemicals |
| GACM Technologies vs. Transport of | GACM Technologies vs. Geojit Financial Services | GACM Technologies vs. The Federal Bank | GACM Technologies vs. Karur Vysya Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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