Correlation Between GACM Technologies and Gujarat Lease
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By analyzing existing cross correlation between GACM Technologies Limited and Gujarat Lease Financing, you can compare the effects of market volatilities on GACM Technologies and Gujarat Lease 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 Gujarat Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Gujarat Lease.
Diversification Opportunities for GACM Technologies and Gujarat Lease
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Gujarat is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Gujarat Lease Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Lease Financing 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 Gujarat Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Lease Financing has no effect on the direction of GACM Technologies i.e., GACM Technologies and Gujarat Lease go up and down completely randomly.
Pair Corralation between GACM Technologies and Gujarat Lease
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Gujarat Lease. In addition to that, GACM Technologies is 1.63 times more volatile than Gujarat Lease Financing. It trades about -0.21 of its total potential returns per unit of risk. Gujarat Lease Financing is currently generating about 0.05 per unit of volatility. If you would invest 755.00 in Gujarat Lease Financing on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Gujarat Lease Financing or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Gujarat Lease Financing
Performance |
| Timeline |
| GACM Technologies |
| Gujarat Lease Financing |
GACM Technologies and Gujarat Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Gujarat Lease
The main advantage of trading using opposite GACM Technologies and Gujarat Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Gujarat Lease 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 Gujarat Lease will offset losses from the drop in Gujarat Lease's long position.| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | GACM Technologies vs. Compucom Software Limited |
| Gujarat Lease vs. California Software | Gujarat Lease vs. Advani Hotels Resorts | Gujarat Lease vs. ideaForge Technology Limited | Gujarat Lease vs. Juniper Hotels |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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