Correlation Between GACM Technologies and Cyient
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By analyzing existing cross correlation between GACM Technologies Limited and Cyient Limited, you can compare the effects of market volatilities on GACM Technologies and Cyient 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 Cyient. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Cyient.
Diversification Opportunities for GACM Technologies and Cyient
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Cyient is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Cyient Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyient 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 Cyient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyient Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Cyient go up and down completely randomly.
Pair Corralation between GACM Technologies and Cyient
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Cyient. In addition to that, GACM Technologies is 1.64 times more volatile than Cyient Limited. It trades about -0.23 of its total potential returns per unit of risk. Cyient Limited is currently generating about 0.04 per unit of volatility. If you would invest 180,676 in Cyient Limited on September 14, 2024 and sell it today you would earn a total of 28,289 from holding Cyient Limited or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.25% |
| Values | Daily Returns |
GACM Technologies Limited vs. Cyient Limited
Performance |
| Timeline |
| GACM Technologies |
| Cyient Limited |
GACM Technologies and Cyient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Cyient
The main advantage of trading using opposite GACM Technologies and Cyient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Cyient 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 Cyient will offset losses from the drop in Cyient'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 |
| Cyient vs. Yes Bank Limited | Cyient vs. Kingfa Science Technology | Cyient vs. Rico Auto Industries | Cyient vs. GACM Technologies 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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