Correlation Between GACM Technologies and Byke Hospitality
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By analyzing existing cross correlation between GACM Technologies Limited and The Byke Hospitality, you can compare the effects of market volatilities on GACM Technologies and Byke Hospitality 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 Byke Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Byke Hospitality.
Diversification Opportunities for GACM Technologies and Byke Hospitality
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Byke is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and The Byke Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byke Hospitality 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 Byke Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byke Hospitality has no effect on the direction of GACM Technologies i.e., GACM Technologies and Byke Hospitality go up and down completely randomly.
Pair Corralation between GACM Technologies and Byke Hospitality
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Byke Hospitality. In addition to that, GACM Technologies is 1.2 times more volatile than The Byke Hospitality. It trades about -0.22 of its total potential returns per unit of risk. The Byke Hospitality is currently generating about 0.05 per unit of volatility. If you would invest 4,225 in The Byke Hospitality on August 26, 2024 and sell it today you would earn a total of 2,775 from holding The Byke Hospitality or generate 65.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 69.25% |
| Values | Daily Returns |
GACM Technologies Limited vs. The Byke Hospitality
Performance |
| Timeline |
| GACM Technologies |
| Byke Hospitality |
GACM Technologies and Byke Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Byke Hospitality
The main advantage of trading using opposite GACM Technologies and Byke Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Byke Hospitality 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 Byke Hospitality will offset losses from the drop in Byke Hospitality's long position.| GACM Technologies vs. AVALON TECHNOLOGIES LTD | GACM Technologies vs. VA Tech Wabag | GACM Technologies vs. Blue Coast Hotels | GACM Technologies vs. Kamat Hotels Limited |
| Byke Hospitality vs. MMTC Limited | Byke Hospitality vs. Kingfa Science Technology | Byke Hospitality vs. Rico Auto Industries | Byke Hospitality vs. GACM Technologies 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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