Correlation Between GACM Technologies and Akums Drugs
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By analyzing existing cross correlation between GACM Technologies Limited and Akums Drugs and, you can compare the effects of market volatilities on GACM Technologies and Akums Drugs 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 Akums Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Akums Drugs.
Diversification Opportunities for GACM Technologies and Akums Drugs
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Akums is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Akums Drugs and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akums Drugs 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 Akums Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akums Drugs has no effect on the direction of GACM Technologies i.e., GACM Technologies and Akums Drugs go up and down completely randomly.
Pair Corralation between GACM Technologies and Akums Drugs
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.72 times more return on investment than Akums Drugs. However, GACM Technologies Limited is 1.38 times less risky than Akums Drugs. It trades about -0.08 of its potential returns per unit of risk. Akums Drugs and is currently generating about -0.28 per unit of risk. If you would invest 92.00 in GACM Technologies Limited on August 29, 2024 and sell it today you would lose (6.00) from holding GACM Technologies Limited or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Akums Drugs and
Performance |
| Timeline |
| GACM Technologies |
| Akums Drugs |
GACM Technologies and Akums Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Akums Drugs
The main advantage of trading using opposite GACM Technologies and Akums Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Akums Drugs 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 Akums Drugs will offset losses from the drop in Akums Drugs' long position.| GACM Technologies vs. Future Retail Limited | GACM Technologies vs. Embassy Office Parks | GACM Technologies vs. General Insurance | GACM Technologies vs. EMBASSY OFFICE PARKS |
| Akums Drugs vs. Kalyani Steels Limited | Akums Drugs vs. Vardhman Special Steels | Akums Drugs vs. Sunflag Iron And | Akums Drugs vs. Sintex Plastics Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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