Correlation Between GACM Technologies and Next Mediaworks
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By analyzing existing cross correlation between GACM Technologies Limited and Next Mediaworks Limited, you can compare the effects of market volatilities on GACM Technologies and Next Mediaworks 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 Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Next Mediaworks.
Diversification Opportunities for GACM Technologies and Next Mediaworks
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between GACM and Next is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Next Mediaworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Mediaworks 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 Next Mediaworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Mediaworks has no effect on the direction of GACM Technologies i.e., GACM Technologies and Next Mediaworks go up and down completely randomly.
Pair Corralation between GACM Technologies and Next Mediaworks
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.76 times more return on investment than Next Mediaworks. However, GACM Technologies Limited is 1.32 times less risky than Next Mediaworks. It trades about -0.14 of its potential returns per unit of risk. Next Mediaworks Limited is currently generating about -0.12 per unit of risk. If you would invest 94.00 in GACM Technologies Limited on November 28, 2024 and sell it today you would lose (6.00) from holding GACM Technologies Limited or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Next Mediaworks Limited
Performance |
| Timeline |
| GACM Technologies |
| Next Mediaworks |
GACM Technologies and Next Mediaworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Next Mediaworks
The main advantage of trading using opposite GACM Technologies and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Next Mediaworks 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 Next Mediaworks will offset losses from the drop in Next Mediaworks' long position.| GACM Technologies vs. Apollo Hospitals Enterprise | GACM Technologies vs. Ratnamani Metals Tubes | GACM Technologies vs. Max Healthcare Institute | GACM Technologies vs. Ankit Metal Power |
| Next Mediaworks vs. Teamlease Services Limited | Next Mediaworks vs. Indraprastha Medical | Next Mediaworks vs. Network18 Media Investments | Next Mediaworks vs. Kilitch Drugs 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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