Correlation Between GACM Technologies and Innova Captab
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By analyzing existing cross correlation between GACM Technologies Limited and Innova Captab Limited, you can compare the effects of market volatilities on GACM Technologies and Innova Captab 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 Innova Captab. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Innova Captab.
Diversification Opportunities for GACM Technologies and Innova Captab
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GACM and Innova is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Innova Captab Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innova Captab 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 Innova Captab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innova Captab Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Innova Captab go up and down completely randomly.
Pair Corralation between GACM Technologies and Innova Captab
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Innova Captab. But the stock apears to be less risky and, when comparing its historical volatility, GACM Technologies Limited is 1.14 times less risky than Innova Captab. The stock trades about -0.23 of its potential returns per unit of risk. The Innova Captab Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 69,780 in Innova Captab Limited on November 2, 2024 and sell it today you would earn a total of 27,115 from holding Innova Captab Limited or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Innova Captab Limited
Performance |
| Timeline |
| GACM Technologies |
| Innova Captab Limited |
GACM Technologies and Innova Captab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Innova Captab
The main advantage of trading using opposite GACM Technologies and Innova Captab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Innova Captab 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 Innova Captab will offset losses from the drop in Innova Captab's long position.| GACM Technologies vs. Kamat Hotels Limited | GACM Technologies vs. Chalet Hotels Limited | GACM Technologies vs. Viceroy Hotels Limited | GACM Technologies vs. Generic Engineering Construction |
| Innova Captab vs. Reliance Communications Limited | Innova Captab vs. Imagicaaworld Entertainment Limited | Innova Captab vs. Eros International Media | Innova Captab vs. Touchwood Entertainment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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