Correlation Between GACM Technologies and Hexa Tradex
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By analyzing existing cross correlation between GACM Technologies Limited and Hexa Tradex Limited, you can compare the effects of market volatilities on GACM Technologies and Hexa Tradex 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 Hexa Tradex. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Hexa Tradex.
Diversification Opportunities for GACM Technologies and Hexa Tradex
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Hexa is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Hexa Tradex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexa Tradex 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 Hexa Tradex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexa Tradex Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Hexa Tradex go up and down completely randomly.
Pair Corralation between GACM Technologies and Hexa Tradex
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Hexa Tradex. In addition to that, GACM Technologies is 1.47 times more volatile than Hexa Tradex Limited. It trades about -0.2 of its total potential returns per unit of risk. Hexa Tradex Limited is currently generating about 0.06 per unit of volatility. If you would invest 15,795 in Hexa Tradex Limited on September 25, 2024 and sell it today you would earn a total of 12,485 from holding Hexa Tradex Limited or generate 79.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 73.62% |
| Values | Daily Returns |
GACM Technologies Limited vs. Hexa Tradex Limited
Performance |
| Timeline |
| GACM Technologies |
| Hexa Tradex Limited |
GACM Technologies and Hexa Tradex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Hexa Tradex
The main advantage of trading using opposite GACM Technologies and Hexa Tradex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Hexa Tradex 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 Hexa Tradex will offset losses from the drop in Hexa Tradex'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 |
| Hexa Tradex vs. Kingfa Science Technology | Hexa Tradex vs. Rico Auto Industries | Hexa Tradex vs. GACM Technologies Limited | Hexa Tradex 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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