Correlation Between GACM Technologies and CSB Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between GACM Technologies Limited and CSB Bank Limited, you can compare the effects of market volatilities on GACM Technologies and CSB Bank 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 CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and CSB Bank.
Diversification Opportunities for GACM Technologies and CSB Bank
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and CSB is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and CSB Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB Bank Limited 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 CSB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bank Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and CSB Bank go up and down completely randomly.
Pair Corralation between GACM Technologies and CSB Bank
Assuming the 90 days trading horizon GACM Technologies is expected to generate 4.01 times less return on investment than CSB Bank. But when comparing it to its historical volatility, GACM Technologies Limited is 1.06 times less risky than CSB Bank. It trades about 0.04 of its potential returns per unit of risk. CSB Bank Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 30,920 in CSB Bank Limited on September 29, 2024 and sell it today you would earn a total of 1,725 from holding CSB Bank Limited or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. CSB Bank Limited
Performance |
| Timeline |
| GACM Technologies |
| CSB Bank Limited |
GACM Technologies and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and CSB Bank
The main advantage of trading using opposite GACM Technologies and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, CSB Bank 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 CSB Bank will offset losses from the drop in CSB Bank's long position.| GACM Technologies vs. Bajaj Holdings Investment | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. Nippon Life India | GACM Technologies vs. 360 ONE WAM |
| CSB Bank vs. Kingfa Science Technology | CSB Bank vs. Rico Auto Industries | CSB Bank vs. GACM Technologies Limited | CSB Bank 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |