Correlation Between GACM Technologies and General Insurance
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By analyzing existing cross correlation between GACM Technologies Limited and General Insurance, you can compare the effects of market volatilities on GACM Technologies and General Insurance 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 General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and General Insurance.
Diversification Opportunities for GACM Technologies and General Insurance
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and General is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance 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 General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of GACM Technologies i.e., GACM Technologies and General Insurance go up and down completely randomly.
Pair Corralation between GACM Technologies and General Insurance
Assuming the 90 days trading horizon GACM Technologies is expected to generate 1.45 times less return on investment than General Insurance. In addition to that, GACM Technologies is 1.45 times more volatile than General Insurance. It trades about 0.18 of its total potential returns per unit of risk. General Insurance is currently generating about 0.38 per unit of volatility. If you would invest 36,630 in General Insurance on September 13, 2024 and sell it today you would earn a total of 5,905 from holding General Insurance or generate 16.12% 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. General Insurance
Performance |
| Timeline |
| GACM Technologies |
| General Insurance |
GACM Technologies and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and General Insurance
The main advantage of trading using opposite GACM Technologies and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| GACM Technologies vs. Arrow Greentech Limited | GACM Technologies vs. Sonata Software Limited | GACM Technologies vs. Orient Technologies Limited | GACM Technologies vs. VA Tech Wabag |
| General Insurance vs. Kingfa Science Technology | General Insurance vs. Rico Auto Industries | General Insurance vs. GACM Technologies Limited | General Insurance 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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