Correlation Between GACM Technologies and Megastar Foods
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By analyzing existing cross correlation between GACM Technologies Limited and Megastar Foods Limited, you can compare the effects of market volatilities on GACM Technologies and Megastar Foods 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 Megastar Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Megastar Foods.
Diversification Opportunities for GACM Technologies and Megastar Foods
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GACM and Megastar is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Megastar Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megastar Foods 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 Megastar Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megastar Foods has no effect on the direction of GACM Technologies i.e., GACM Technologies and Megastar Foods go up and down completely randomly.
Pair Corralation between GACM Technologies and Megastar Foods
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Megastar Foods. In addition to that, GACM Technologies is 1.27 times more volatile than Megastar Foods Limited. It trades about -0.21 of its total potential returns per unit of risk. Megastar Foods Limited is currently generating about 0.01 per unit of volatility. If you would invest 22,560 in Megastar Foods Limited on September 3, 2024 and sell it today you would lose (610.00) from holding Megastar Foods Limited or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 73.72% |
| Values | Daily Returns |
GACM Technologies Limited vs. Megastar Foods Limited
Performance |
| Timeline |
| GACM Technologies |
| Megastar Foods |
GACM Technologies and Megastar Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Megastar Foods
The main advantage of trading using opposite GACM Technologies and Megastar Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Megastar Foods 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 Megastar Foods will offset losses from the drop in Megastar Foods' 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 |
| Megastar Foods vs. Tata Consultancy Services | Megastar Foods vs. Quess Corp Limited | Megastar Foods vs. Reliance Industries Limited | Megastar Foods vs. Infosys 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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