Correlation Between GACM Technologies and Power Finance
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By analyzing existing cross correlation between GACM Technologies Limited and Power Finance, you can compare the effects of market volatilities on GACM Technologies and Power Finance 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 Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Power Finance.
Diversification Opportunities for GACM Technologies and Power Finance
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GACM and Power is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Finance 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 Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of GACM Technologies i.e., GACM Technologies and Power Finance go up and down completely randomly.
Pair Corralation between GACM Technologies and Power Finance
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Power Finance. But the stock apears to be less risky and, when comparing its historical volatility, GACM Technologies Limited is 1.04 times less risky than Power Finance. The stock trades about -0.2 of its potential returns per unit of risk. The Power Finance is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,894 in Power Finance on September 23, 2024 and sell it today you would earn a total of 34,436 from holding Power Finance or generate 316.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.62% |
| Values | Daily Returns |
GACM Technologies Limited vs. Power Finance
Performance |
| Timeline |
| GACM Technologies |
| Power Finance |
GACM Technologies and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Power Finance
The main advantage of trading using opposite GACM Technologies and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Power Finance 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 Power Finance will offset losses from the drop in Power Finance'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 |
| Power Finance vs. Kingfa Science Technology | Power Finance vs. Rico Auto Industries | Power Finance vs. GACM Technologies Limited | Power Finance 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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