Correlation Between GACM Technologies and MRF
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By analyzing existing cross correlation between GACM Technologies Limited and MRF Limited, you can compare the effects of market volatilities on GACM Technologies and MRF 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 MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and MRF.
Diversification Opportunities for GACM Technologies and MRF
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and MRF is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF 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 MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and MRF go up and down completely randomly.
Pair Corralation between GACM Technologies and MRF
Assuming the 90 days trading horizon GACM Technologies is expected to generate 4.13 times less return on investment than MRF. In addition to that, GACM Technologies is 1.92 times more volatile than MRF Limited. It trades about 0.04 of its total potential returns per unit of risk. MRF Limited is currently generating about 0.29 per unit of volatility. If you would invest 12,366,200 in MRF Limited on September 29, 2024 and sell it today you would earn a total of 789,200 from holding MRF Limited or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GACM Technologies Limited vs. MRF Limited
Performance |
| Timeline |
| GACM Technologies |
| MRF Limited |
GACM Technologies and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and MRF
The main advantage of trading using opposite GACM Technologies and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF's long position.| GACM Technologies vs. Bajaj Holdings Investment | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. Nippon Life India | GACM Technologies vs. 360 ONE WAM |
| MRF vs. Kingfa Science Technology | MRF vs. Rico Auto Industries | MRF vs. GACM Technologies Limited | MRF vs. COSMO FIRST 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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