Correlation Between GACM Technologies and Consolidated Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between GACM Technologies Limited and Consolidated Construction Consortium, you can compare the effects of market volatilities on GACM Technologies and Consolidated Construction 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 Consolidated Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Consolidated Construction.
Diversification Opportunities for GACM Technologies and Consolidated Construction
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Consolidated is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Consolidated Construction Cons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Construction 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 Consolidated Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Construction has no effect on the direction of GACM Technologies i.e., GACM Technologies and Consolidated Construction go up and down completely randomly.
Pair Corralation between GACM Technologies and Consolidated Construction
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.45 times more return on investment than Consolidated Construction. However, GACM Technologies Limited is 2.24 times less risky than Consolidated Construction. It trades about 0.06 of its potential returns per unit of risk. Consolidated Construction Consortium is currently generating about -0.16 per unit of risk. If you would invest 92.00 in GACM Technologies Limited on November 7, 2024 and sell it today you would earn a total of 2.00 from holding GACM Technologies Limited or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Consolidated Construction Cons
Performance |
| Timeline |
| GACM Technologies |
| Consolidated Construction |
GACM Technologies and Consolidated Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Consolidated Construction
The main advantage of trading using opposite GACM Technologies and Consolidated Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Consolidated Construction 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 Consolidated Construction will offset losses from the drop in Consolidated Construction's long position.| GACM Technologies vs. Datamatics Global Services | GACM Technologies vs. Varun Beverages Limited | GACM Technologies vs. WESTLIFE FOODWORLD LIMITED | GACM Technologies vs. Bajaj Holdings Investment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |