Correlation Between GACM Technologies and Hilton Metal
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By analyzing existing cross correlation between GACM Technologies Limited and Hilton Metal Forging, you can compare the effects of market volatilities on GACM Technologies and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Hilton Metal.
Diversification Opportunities for GACM Technologies and Hilton Metal
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GACM and Hilton is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of GACM Technologies i.e., GACM Technologies and Hilton Metal go up and down completely randomly.
Pair Corralation between GACM Technologies and Hilton Metal
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.47 times more return on investment than Hilton Metal. However, GACM Technologies Limited is 2.14 times less risky than Hilton Metal. It trades about 0.07 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about -0.28 per unit of risk. If you would invest 92.00 in GACM Technologies Limited on November 5, 2024 and sell it today you would earn a total of 2.00 from holding GACM Technologies Limited or generate 2.17% 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. Hilton Metal Forging
Performance |
| Timeline |
| GACM Technologies |
| Hilton Metal Forging |
GACM Technologies and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Hilton Metal
The main advantage of trading using opposite GACM Technologies and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| GACM Technologies vs. Ratnamani Metals Tubes | GACM Technologies vs. Spencers Retail Limited | GACM Technologies vs. Indian Metals Ferro | GACM Technologies vs. V Mart Retail Limited |
| Hilton Metal vs. State Bank of | Hilton Metal vs. Life Insurance | Hilton Metal vs. HDFC Bank Limited | Hilton Metal vs. ICICI Bank 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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