Correlation Between GACM Technologies and Federal Bank
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By analyzing existing cross correlation between GACM Technologies Limited and The Federal Bank, you can compare the effects of market volatilities on GACM Technologies and Federal 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 Federal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Federal Bank.
Diversification Opportunities for GACM Technologies and Federal Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GACM and Federal is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and The Federal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Bank 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 Federal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Bank has no effect on the direction of GACM Technologies i.e., GACM Technologies and Federal Bank go up and down completely randomly.
Pair Corralation between GACM Technologies and Federal Bank
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 1.36 times more return on investment than Federal Bank. However, GACM Technologies is 1.36 times more volatile than The Federal Bank. It trades about 0.24 of its potential returns per unit of risk. The Federal Bank is currently generating about -0.23 per unit of risk. If you would invest 85.00 in GACM Technologies Limited on September 25, 2024 and sell it today you would earn a total of 9.00 from holding GACM Technologies Limited or generate 10.59% 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. The Federal Bank
Performance |
| Timeline |
| GACM Technologies |
| Federal Bank |
GACM Technologies and Federal Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Federal Bank
The main advantage of trading using opposite GACM Technologies and Federal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Federal 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 Federal Bank will offset losses from the drop in Federal 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 |
| Federal Bank vs. Bajaj Holdings Investment | Federal Bank vs. POWERGRID Infrastructure Investment | Federal Bank vs. Welspun Investments and | Federal Bank vs. BF Investment 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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