Correlation Between GACM Technologies and Industrial Investment
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By analyzing existing cross correlation between GACM Technologies Limited and Industrial Investment Trust, you can compare the effects of market volatilities on GACM Technologies and Industrial Investment 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 Industrial Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Industrial Investment.
Diversification Opportunities for GACM Technologies and Industrial Investment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GACM and Industrial is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Industrial Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Investment 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 Industrial Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Investment has no effect on the direction of GACM Technologies i.e., GACM Technologies and Industrial Investment go up and down completely randomly.
Pair Corralation between GACM Technologies and Industrial Investment
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.67 times more return on investment than Industrial Investment. However, GACM Technologies Limited is 1.49 times less risky than Industrial Investment. It trades about 0.36 of its potential returns per unit of risk. Industrial Investment Trust is currently generating about -0.05 per unit of risk. If you would invest 85.00 in GACM Technologies Limited on September 23, 2024 and sell it today you would earn a total of 13.00 from holding GACM Technologies Limited or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Industrial Investment Trust
Performance |
| Timeline |
| GACM Technologies |
| Industrial Investment |
GACM Technologies and Industrial Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Industrial Investment
The main advantage of trading using opposite GACM Technologies and Industrial Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Industrial Investment 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 Industrial Investment will offset losses from the drop in Industrial Investment'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 |
| Industrial Investment vs. Kingfa Science Technology | Industrial Investment vs. Rico Auto Industries | Industrial Investment vs. GACM Technologies Limited | Industrial Investment 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 CEOs Directory module to screen CEOs from public companies around the world.
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