Correlation Between GACM Technologies and 21st Century
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By analyzing existing cross correlation between GACM Technologies Limited and 21st Century Management, you can compare the effects of market volatilities on GACM Technologies and 21st Century 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 GACM Technologies with a short position of 21st Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and 21st Century.
Diversification Opportunities for GACM Technologies and 21st Century
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and 21st is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and 21st Century Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21st Century Management and GACM Technologies 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 GACM Technologies Limited are associated (or correlated) with 21st Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21st Century Management has no effect on the direction of GACM Technologies i.e., GACM Technologies and 21st Century go up and down completely randomly.
Pair Corralation between GACM Technologies and 21st Century
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the 21st Century. In addition to that, GACM Technologies is 2.06 times more volatile than 21st Century Management. It trades about -0.22 of its total potential returns per unit of risk. 21st Century Management is currently generating about 0.19 per unit of volatility. If you would invest 2,182 in 21st Century Management on August 27, 2024 and sell it today you would earn a total of 7,939 from holding 21st Century Management or generate 363.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 69.39% |
| Values | Daily Returns |
GACM Technologies Limited vs. 21st Century Management
Performance |
| Timeline |
| GACM Technologies |
| 21st Century Management |
GACM Technologies and 21st Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and 21st Century
The main advantage of trading using opposite GACM Technologies and 21st Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, 21st Century 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 21st Century will offset losses from the drop in 21st Century's long position.| GACM Technologies vs. Indian Metals Ferro | GACM Technologies vs. Asian Hotels Limited | GACM Technologies vs. Hathway Cable Datacom | GACM Technologies vs. Taj GVK Hotels |
| 21st Century vs. Kingfa Science Technology | 21st Century vs. Rico Auto Industries | 21st Century vs. GACM Technologies Limited | 21st Century vs. COSMO FIRST LIMITED |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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