Correlation Between GACM Technologies and Indian Oil
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By analyzing existing cross correlation between GACM Technologies Limited and Indian Oil, you can compare the effects of market volatilities on GACM Technologies and Indian Oil 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 Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Indian Oil.
Diversification Opportunities for GACM Technologies and Indian Oil
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Indian is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Indian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Oil 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 Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Oil has no effect on the direction of GACM Technologies i.e., GACM Technologies and Indian Oil go up and down completely randomly.
Pair Corralation between GACM Technologies and Indian Oil
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Indian Oil. In addition to that, GACM Technologies is 1.85 times more volatile than Indian Oil. It trades about -0.07 of its total potential returns per unit of risk. Indian Oil is currently generating about -0.13 per unit of volatility. If you would invest 14,549 in Indian Oil on September 2, 2024 and sell it today you would lose (686.00) from holding Indian Oil or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GACM Technologies Limited vs. Indian Oil
Performance |
| Timeline |
| GACM Technologies |
| Indian Oil |
GACM Technologies and Indian Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Indian Oil
The main advantage of trading using opposite GACM Technologies and Indian Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Indian Oil 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 Oil will offset losses from the drop in Indian Oil'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 Oil vs. Healthcare Global Enterprises | Indian Oil vs. Iris Clothings Limited | Indian Oil vs. Kewal Kiran Clothing | Indian Oil vs. Entero Healthcare Solutions |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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