Correlation Between GACM Technologies and KCP Sugar
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By analyzing existing cross correlation between GACM Technologies Limited and KCP Sugar and, you can compare the effects of market volatilities on GACM Technologies and KCP Sugar 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 KCP Sugar. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and KCP Sugar.
Diversification Opportunities for GACM Technologies and KCP Sugar
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and KCP is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and KCP Sugar and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCP Sugar 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 KCP Sugar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCP Sugar has no effect on the direction of GACM Technologies i.e., GACM Technologies and KCP Sugar go up and down completely randomly.
Pair Corralation between GACM Technologies and KCP Sugar
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the KCP Sugar. In addition to that, GACM Technologies is 1.22 times more volatile than KCP Sugar and. It trades about -0.21 of its total potential returns per unit of risk. KCP Sugar and is currently generating about 0.08 per unit of volatility. If you would invest 3,562 in KCP Sugar and on September 3, 2024 and sell it today you would earn a total of 1,133 from holding KCP Sugar and or generate 31.81% 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. KCP Sugar and
Performance |
| Timeline |
| GACM Technologies |
| KCP Sugar |
GACM Technologies and KCP Sugar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and KCP Sugar
The main advantage of trading using opposite GACM Technologies and KCP Sugar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, KCP Sugar 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 KCP Sugar will offset losses from the drop in KCP Sugar's long position.| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | GACM Technologies vs. Compucom Software Limited |
| KCP Sugar vs. Krebs Biochemicals and | KCP Sugar vs. Sportking India Limited | KCP Sugar vs. Mangalore Chemicals Fertilizers | KCP Sugar vs. Steelcast 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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