Correlation Between GACM Technologies and Manaksia Coated
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By analyzing existing cross correlation between GACM Technologies Limited and Manaksia Coated Metals, you can compare the effects of market volatilities on GACM Technologies and Manaksia Coated 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 Manaksia Coated. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Manaksia Coated.
Diversification Opportunities for GACM Technologies and Manaksia Coated
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GACM and Manaksia is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Manaksia Coated Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Coated Metals 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 Manaksia Coated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Coated Metals has no effect on the direction of GACM Technologies i.e., GACM Technologies and Manaksia Coated go up and down completely randomly.
Pair Corralation between GACM Technologies and Manaksia Coated
Assuming the 90 days trading horizon GACM Technologies is expected to generate 6.39 times less return on investment than Manaksia Coated. But when comparing it to its historical volatility, GACM Technologies Limited is 1.19 times less risky than Manaksia Coated. It trades about 0.14 of its potential returns per unit of risk. Manaksia Coated Metals is currently generating about 0.78 of returns per unit of risk over similar time horizon. If you would invest 6,179 in Manaksia Coated Metals on September 12, 2024 and sell it today you would earn a total of 4,239 from holding Manaksia Coated Metals or generate 68.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Manaksia Coated Metals
Performance |
| Timeline |
| GACM Technologies |
| Manaksia Coated Metals |
GACM Technologies and Manaksia Coated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Manaksia Coated
The main advantage of trading using opposite GACM Technologies and Manaksia Coated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Manaksia Coated 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 Manaksia Coated will offset losses from the drop in Manaksia Coated's long position.| GACM Technologies vs. ICICI Bank Limited | GACM Technologies vs. Indian Metals Ferro | GACM Technologies vs. Ankit Metal Power | GACM Technologies vs. Shyam Metalics and |
| Manaksia Coated vs. Reliance Industries Limited | Manaksia Coated vs. Oil Natural Gas | Manaksia Coated vs. Indo Borax Chemicals | Manaksia Coated vs. Kingfa Science Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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