Correlation Between GACM Technologies and Exxaro Tiles
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By analyzing existing cross correlation between GACM Technologies Limited and Exxaro Tiles Limited, you can compare the effects of market volatilities on GACM Technologies and Exxaro Tiles 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 Exxaro Tiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Exxaro Tiles.
Diversification Opportunities for GACM Technologies and Exxaro Tiles
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GACM and Exxaro is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Exxaro Tiles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxaro Tiles 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 Exxaro Tiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxaro Tiles Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Exxaro Tiles go up and down completely randomly.
Pair Corralation between GACM Technologies and Exxaro Tiles
Assuming the 90 days trading horizon GACM Technologies is expected to generate 65.65 times less return on investment than Exxaro Tiles. But when comparing it to its historical volatility, GACM Technologies Limited is 82.05 times less risky than Exxaro Tiles. It trades about 0.25 of its potential returns per unit of risk. Exxaro Tiles Limited is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Exxaro Tiles Limited on September 16, 2024 and sell it today you would earn a total of 234.00 from holding Exxaro Tiles Limited or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Exxaro Tiles Limited
Performance |
| Timeline |
| GACM Technologies |
| Exxaro Tiles Limited |
GACM Technologies and Exxaro Tiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Exxaro Tiles
The main advantage of trading using opposite GACM Technologies and Exxaro Tiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Exxaro Tiles 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 Exxaro Tiles will offset losses from the drop in Exxaro Tiles' 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 |
| Exxaro Tiles vs. Kingfa Science Technology | Exxaro Tiles vs. Rico Auto Industries | Exxaro Tiles vs. GACM Technologies Limited | Exxaro Tiles 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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