Correlation Between GACM Technologies and Centum Electronics
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By analyzing existing cross correlation between GACM Technologies Limited and Centum Electronics Limited, you can compare the effects of market volatilities on GACM Technologies and Centum Electronics 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 Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Centum Electronics.
Diversification Opportunities for GACM Technologies and Centum Electronics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between GACM and Centum is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics 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 Centum Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centum Electronics has no effect on the direction of GACM Technologies i.e., GACM Technologies and Centum Electronics go up and down completely randomly.
Pair Corralation between GACM Technologies and Centum Electronics
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 1.12 times more return on investment than Centum Electronics. However, GACM Technologies is 1.12 times more volatile than Centum Electronics Limited. It trades about -0.05 of its potential returns per unit of risk. Centum Electronics Limited is currently generating about -0.15 per unit of risk. If you would invest 92.00 in GACM Technologies Limited on August 30, 2024 and sell it today you would lose (4.00) from holding GACM Technologies Limited or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GACM Technologies Limited vs. Centum Electronics Limited
Performance |
| Timeline |
| GACM Technologies |
| Centum Electronics |
GACM Technologies and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Centum Electronics
The main advantage of trading using opposite GACM Technologies and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Centum Electronics 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 Centum Electronics will offset losses from the drop in Centum Electronics' long position.| GACM Technologies vs. Cambridge Technology Enterprises | GACM Technologies vs. Manaksia Coated Metals | GACM Technologies vs. Shyam Metalics and | GACM Technologies vs. Compucom Software Limited |
| Centum Electronics vs. Kingfa Science Technology | Centum Electronics vs. Rico Auto Industries | Centum Electronics vs. GACM Technologies Limited | Centum Electronics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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