Correlation Between GACM Technologies and Ajanta Pharma
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By analyzing existing cross correlation between GACM Technologies Limited and Ajanta Pharma Limited, you can compare the effects of market volatilities on GACM Technologies and Ajanta Pharma 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 Ajanta Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Ajanta Pharma.
Diversification Opportunities for GACM Technologies and Ajanta Pharma
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Ajanta is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Ajanta Pharma Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ajanta Pharma Limited 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 Ajanta Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ajanta Pharma Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Ajanta Pharma go up and down completely randomly.
Pair Corralation between GACM Technologies and Ajanta Pharma
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Ajanta Pharma. In addition to that, GACM Technologies is 1.78 times more volatile than Ajanta Pharma Limited. It trades about -0.24 of its total potential returns per unit of risk. Ajanta Pharma Limited is currently generating about 0.1 per unit of volatility. If you would invest 185,456 in Ajanta Pharma Limited on September 14, 2024 and sell it today you would earn a total of 98,439 from holding Ajanta Pharma Limited or generate 53.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.18% |
| Values | Daily Returns |
GACM Technologies Limited vs. Ajanta Pharma Limited
Performance |
| Timeline |
| GACM Technologies |
| Ajanta Pharma Limited |
GACM Technologies and Ajanta Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Ajanta Pharma
The main advantage of trading using opposite GACM Technologies and Ajanta Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Ajanta Pharma 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 Ajanta Pharma will offset losses from the drop in Ajanta Pharma's long position.| GACM Technologies vs. Cantabil Retail India | GACM Technologies vs. Sonata Software Limited | GACM Technologies vs. Palred Technologies Limited | GACM Technologies vs. ZF Commercial Vehicle |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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