Correlation Between GACM Technologies and BF Utilities
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By analyzing existing cross correlation between GACM Technologies Limited and BF Utilities Limited, you can compare the effects of market volatilities on GACM Technologies and BF Utilities 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 Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and BF Utilities.
Diversification Opportunities for GACM Technologies and BF Utilities
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GACM and BFUTILITIE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities 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 Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and BF Utilities go up and down completely randomly.
Pair Corralation between GACM Technologies and BF Utilities
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the BF Utilities. In addition to that, GACM Technologies is 1.07 times more volatile than BF Utilities Limited. It trades about -0.2 of its total potential returns per unit of risk. BF Utilities Limited is currently generating about 0.07 per unit of volatility. If you would invest 39,540 in BF Utilities Limited on September 26, 2024 and sell it today you would earn a total of 62,290 from holding BF Utilities Limited or generate 157.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.98% |
| Values | Daily Returns |
GACM Technologies Limited vs. BF Utilities Limited
Performance |
| Timeline |
| GACM Technologies |
| BF Utilities Limited |
GACM Technologies and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and BF Utilities
The main advantage of trading using opposite GACM Technologies and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, BF Utilities 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 Utilities will offset losses from the drop in BF Utilities' long position.| GACM Technologies vs. Bajaj Holdings Investment | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. Nippon Life India | GACM Technologies vs. 360 ONE WAM |
| BF Utilities vs. Kingfa Science Technology | BF Utilities vs. Rico Auto Industries | BF Utilities vs. GACM Technologies Limited | BF Utilities 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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