Correlation Between GACM Technologies and Chemcon Speciality
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By analyzing existing cross correlation between GACM Technologies Limited and Chemcon Speciality Chemicals, you can compare the effects of market volatilities on GACM Technologies and Chemcon Speciality 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 Chemcon Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Chemcon Speciality.
Diversification Opportunities for GACM Technologies and Chemcon Speciality
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between GACM and Chemcon is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Chemcon Speciality Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemcon Speciality 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 Chemcon Speciality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemcon Speciality has no effect on the direction of GACM Technologies i.e., GACM Technologies and Chemcon Speciality go up and down completely randomly.
Pair Corralation between GACM Technologies and Chemcon Speciality
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.88 times more return on investment than Chemcon Speciality. However, GACM Technologies Limited is 1.13 times less risky than Chemcon Speciality. It trades about -0.14 of its potential returns per unit of risk. Chemcon Speciality Chemicals is currently generating about -0.16 per unit of risk. If you would invest 102.00 in GACM Technologies Limited on November 3, 2024 and sell it today you would lose (9.00) from holding GACM Technologies Limited or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
GACM Technologies Limited vs. Chemcon Speciality Chemicals
Performance |
| Timeline |
| GACM Technologies |
| Chemcon Speciality |
GACM Technologies and Chemcon Speciality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Chemcon Speciality
The main advantage of trading using opposite GACM Technologies and Chemcon Speciality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Chemcon Speciality 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 Chemcon Speciality will offset losses from the drop in Chemcon Speciality's long position.| GACM Technologies vs. Vinati Organics Limited | GACM Technologies vs. Univa Foods Limited | GACM Technologies vs. Dodla Dairy Limited | GACM Technologies vs. Apex Frozen Foods |
| Chemcon Speciality vs. Kohinoor Foods Limited | Chemcon Speciality vs. VIP Clothing Limited | Chemcon Speciality vs. WESTLIFE FOODWORLD LIMITED | Chemcon Speciality vs. Parag Milk Foods |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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