Correlation Between Gamatronic Electronic and Spuntech
Can any of the company-specific risk be diversified away by investing in both Gamatronic Electronic and Spuntech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gamatronic Electronic and Spuntech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamatronic Electronic Industries and Spuntech, you can compare the effects of market volatilities on Gamatronic Electronic and Spuntech 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 Gamatronic Electronic with a short position of Spuntech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamatronic Electronic and Spuntech.
Diversification Opportunities for Gamatronic Electronic and Spuntech
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamatronic and Spuntech is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gamatronic Electronic Industri and Spuntech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spuntech and Gamatronic Electronic 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 Gamatronic Electronic Industries are associated (or correlated) with Spuntech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spuntech has no effect on the direction of Gamatronic Electronic i.e., Gamatronic Electronic and Spuntech go up and down completely randomly.
Pair Corralation between Gamatronic Electronic and Spuntech
Assuming the 90 days trading horizon Gamatronic Electronic Industries is expected to under-perform the Spuntech. In addition to that, Gamatronic Electronic is 1.25 times more volatile than Spuntech. It trades about -0.04 of its total potential returns per unit of risk. Spuntech is currently generating about 0.06 per unit of volatility. If you would invest 30,752 in Spuntech on August 26, 2024 and sell it today you would earn a total of 19,748 from holding Spuntech or generate 64.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamatronic Electronic Industri vs. Spuntech
Performance |
| Timeline |
| Gamatronic Electronic |
| Spuntech |
Gamatronic Electronic and Spuntech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamatronic Electronic and Spuntech
The main advantage of trading using opposite Gamatronic Electronic and Spuntech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamatronic Electronic position performs unexpectedly, Spuntech 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 Spuntech will offset losses from the drop in Spuntech's long position.| Gamatronic Electronic vs. Spuntech | Gamatronic Electronic vs. Retailors | Gamatronic Electronic vs. Polyram Plastic Industries | Gamatronic Electronic vs. B Communications |
| Spuntech vs. Neto ME Holdings | Spuntech vs. Aryt Industries | Spuntech vs. Kerur Holdings | Spuntech vs. Scope Metals Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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