Correlation Between GACM Technologies and Punjab Sind
Specify exactly 2 symbols:
By analyzing existing cross correlation between GACM Technologies Limited and Punjab Sind Bank, you can compare the effects of market volatilities on GACM Technologies and Punjab Sind 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 Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Punjab Sind.
Diversification Opportunities for GACM Technologies and Punjab Sind
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Punjab is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Punjab Sind Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab Sind Bank 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 Punjab Sind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab Sind Bank has no effect on the direction of GACM Technologies i.e., GACM Technologies and Punjab Sind go up and down completely randomly.
Pair Corralation between GACM Technologies and Punjab Sind
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.73 times more return on investment than Punjab Sind. However, GACM Technologies Limited is 1.37 times less risky than Punjab Sind. It trades about -0.2 of its potential returns per unit of risk. Punjab Sind Bank is currently generating about -0.44 per unit of risk. If you would invest 95.00 in GACM Technologies Limited on October 11, 2024 and sell it today you would lose (4.00) from holding GACM Technologies Limited or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Punjab Sind Bank
Performance |
| Timeline |
| GACM Technologies |
| Punjab Sind Bank |
GACM Technologies and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Punjab Sind
The main advantage of trading using opposite GACM Technologies and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Punjab Sind 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 Punjab Sind will offset losses from the drop in Punjab Sind's long position.| GACM Technologies vs. Golden Tobacco Limited | GACM Technologies vs. SAL Steel Limited | GACM Technologies vs. Prakash Steelage Limited | GACM Technologies vs. Mahamaya Steel Industries |
| Punjab Sind vs. Zodiac Clothing | Punjab Sind vs. DMCC SPECIALITY CHEMICALS | Punjab Sind vs. LLOYDS METALS AND | Punjab Sind vs. Sanginita Chemicals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |