Correlation Between GACM Technologies and Caplin Point
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By analyzing existing cross correlation between GACM Technologies Limited and Caplin Point Laboratories, you can compare the effects of market volatilities on GACM Technologies and Caplin Point 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 Caplin Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Caplin Point.
Diversification Opportunities for GACM Technologies and Caplin Point
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GACM and Caplin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Caplin Point Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caplin Point Laboratories 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 Caplin Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caplin Point Laboratories has no effect on the direction of GACM Technologies i.e., GACM Technologies and Caplin Point go up and down completely randomly.
Pair Corralation between GACM Technologies and Caplin Point
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Caplin Point. In addition to that, GACM Technologies is 1.47 times more volatile than Caplin Point Laboratories. It trades about -0.2 of its total potential returns per unit of risk. Caplin Point Laboratories is currently generating about 0.12 per unit of volatility. If you would invest 69,924 in Caplin Point Laboratories on September 14, 2024 and sell it today you would earn a total of 173,921 from holding Caplin Point Laboratories or generate 248.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.78% |
| Values | Daily Returns |
GACM Technologies Limited vs. Caplin Point Laboratories
Performance |
| Timeline |
| GACM Technologies |
| Caplin Point Laboratories |
GACM Technologies and Caplin Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Caplin Point
The main advantage of trading using opposite GACM Technologies and Caplin Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Caplin Point 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 Caplin Point will offset losses from the drop in Caplin Point'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 |
| Caplin Point vs. Kingfa Science Technology | Caplin Point vs. Rico Auto Industries | Caplin Point vs. GACM Technologies Limited | Caplin Point 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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