Correlation Between GACM Technologies and Electronics Mart
Specify exactly 2 symbols:
By analyzing existing cross correlation between GACM Technologies Limited and Electronics Mart India, you can compare the effects of market volatilities on GACM Technologies and Electronics Mart 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 Electronics Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Electronics Mart.
Diversification Opportunities for GACM Technologies and Electronics Mart
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Electronics is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Electronics Mart India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Mart India 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 Electronics Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Mart India has no effect on the direction of GACM Technologies i.e., GACM Technologies and Electronics Mart go up and down completely randomly.
Pair Corralation between GACM Technologies and Electronics Mart
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.86 times more return on investment than Electronics Mart. However, GACM Technologies Limited is 1.16 times less risky than Electronics Mart. It trades about -0.08 of its potential returns per unit of risk. Electronics Mart India is currently generating about -0.1 per unit of risk. If you would invest 92.00 in GACM Technologies Limited on August 29, 2024 and sell it today you would lose (6.00) from holding GACM Technologies Limited or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Electronics Mart India
Performance |
| Timeline |
| GACM Technologies |
| Electronics Mart India |
GACM Technologies and Electronics Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Electronics Mart
The main advantage of trading using opposite GACM Technologies and Electronics Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Electronics Mart 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 Electronics Mart will offset losses from the drop in Electronics Mart's long position.| GACM Technologies vs. Future Retail Limited | GACM Technologies vs. Embassy Office Parks | GACM Technologies vs. General Insurance | GACM Technologies vs. EMBASSY OFFICE PARKS |
| Electronics Mart vs. Pilani Investment and | Electronics Mart vs. Baazar Style Retail | Electronics Mart vs. Kalyani Investment | Electronics Mart vs. Tata Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |