Correlation Between GACM Technologies and BF Investment
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By analyzing existing cross correlation between GACM Technologies Limited and BF Investment Limited, you can compare the effects of market volatilities on GACM Technologies and BF Investment 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 BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and BF Investment.
Diversification Opportunities for GACM Technologies and BF Investment
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GACM and BFINVEST is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment 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 BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and BF Investment go up and down completely randomly.
Pair Corralation between GACM Technologies and BF Investment
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the BF Investment. In addition to that, GACM Technologies is 1.19 times more volatile than BF Investment Limited. It trades about -0.11 of its total potential returns per unit of risk. BF Investment Limited is currently generating about 0.22 per unit of volatility. If you would invest 65,345 in BF Investment Limited on September 3, 2024 and sell it today you would earn a total of 7,935 from holding BF Investment Limited or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. BF Investment Limited
Performance |
| Timeline |
| GACM Technologies |
| BF Investment Limited |
GACM Technologies and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and BF Investment
The main advantage of trading using opposite GACM Technologies and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, BF Investment 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 BF Investment will offset losses from the drop in BF Investment's long position.| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | GACM Technologies vs. Compucom Software Limited |
| BF Investment vs. Procter Gamble Health | BF Investment vs. Associated Alcohols Breweries | BF Investment vs. EMBASSY OFFICE PARKS | BF Investment vs. Ratnamani Metals Tubes |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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