Correlation Between GACM Technologies and Digjam
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By analyzing existing cross correlation between GACM Technologies Limited and Digjam Limited, you can compare the effects of market volatilities on GACM Technologies and Digjam 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 Digjam. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Digjam.
Diversification Opportunities for GACM Technologies and Digjam
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and Digjam is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Digjam Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digjam 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 Digjam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digjam Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Digjam go up and down completely randomly.
Pair Corralation between GACM Technologies and Digjam
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Digjam. In addition to that, GACM Technologies is 1.43 times more volatile than Digjam Limited. It trades about -0.01 of its total potential returns per unit of risk. Digjam Limited is currently generating about 0.09 per unit of volatility. If you would invest 8,196 in Digjam Limited on August 25, 2024 and sell it today you would earn a total of 353.00 from holding Digjam Limited or generate 4.31% 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. Digjam Limited
Performance |
| Timeline |
| GACM Technologies |
| Digjam Limited |
GACM Technologies and Digjam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Digjam
The main advantage of trading using opposite GACM Technologies and Digjam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Digjam 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 Digjam will offset losses from the drop in Digjam's long position.| GACM Technologies vs. AVALON TECHNOLOGIES LTD | GACM Technologies vs. VA Tech Wabag | GACM Technologies vs. Blue Coast Hotels | GACM Technologies vs. Kamat Hotels Limited |
| Digjam vs. Gujarat Raffia Industries | Digjam vs. Kingfa Science Technology | Digjam vs. Rico Auto Industries | Digjam 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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