Correlation Between GACM Technologies and Indian Card
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By analyzing existing cross correlation between GACM Technologies Limited and Indian Card Clothing, you can compare the effects of market volatilities on GACM Technologies and Indian Card 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 Indian Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Indian Card.
Diversification Opportunities for GACM Technologies and Indian Card
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Indian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Indian Card Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Card Clothing 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 Indian Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Card Clothing has no effect on the direction of GACM Technologies i.e., GACM Technologies and Indian Card go up and down completely randomly.
Pair Corralation between GACM Technologies and Indian Card
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Indian Card. In addition to that, GACM Technologies is 2.7 times more volatile than Indian Card Clothing. It trades about -0.07 of its total potential returns per unit of risk. Indian Card Clothing is currently generating about 0.08 per unit of volatility. If you would invest 26,050 in Indian Card Clothing on September 2, 2024 and sell it today you would earn a total of 520.00 from holding Indian Card Clothing or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Indian Card Clothing
Performance |
| Timeline |
| GACM Technologies |
| Indian Card Clothing |
GACM Technologies and Indian Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Indian Card
The main advantage of trading using opposite GACM Technologies and Indian Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Indian Card 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 Indian Card will offset losses from the drop in Indian Card's long position.| GACM Technologies vs. Ami Organics Limited | GACM Technologies vs. Aarey Drugs Pharmaceuticals | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. Vinati Organics Limited |
| Indian Card vs. Ratnamani Metals Tubes | Indian Card vs. OnMobile Global Limited | Indian Card vs. Shivalik Bimetal Controls | Indian Card vs. Hisar Metal Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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