Correlation Between GACM Technologies and Salzer Electronics
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By analyzing existing cross correlation between GACM Technologies Limited and Salzer Electronics Limited, you can compare the effects of market volatilities on GACM Technologies and Salzer Electronics 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 Salzer Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Salzer Electronics.
Diversification Opportunities for GACM Technologies and Salzer Electronics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Salzer is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Salzer Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salzer Electronics 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 Salzer Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salzer Electronics has no effect on the direction of GACM Technologies i.e., GACM Technologies and Salzer Electronics go up and down completely randomly.
Pair Corralation between GACM Technologies and Salzer Electronics
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Salzer Electronics. In addition to that, GACM Technologies is 1.05 times more volatile than Salzer Electronics Limited. It trades about -0.19 of its total potential returns per unit of risk. Salzer Electronics Limited is currently generating about 0.11 per unit of volatility. If you would invest 26,860 in Salzer Electronics Limited on November 5, 2024 and sell it today you would earn a total of 95,835 from holding Salzer Electronics Limited or generate 356.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.84% |
| Values | Daily Returns |
GACM Technologies Limited vs. Salzer Electronics Limited
Performance |
| Timeline |
| GACM Technologies |
| Salzer Electronics |
GACM Technologies and Salzer Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Salzer Electronics
The main advantage of trading using opposite GACM Technologies and Salzer Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Salzer Electronics 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 Salzer Electronics will offset losses from the drop in Salzer Electronics' long position.| GACM Technologies vs. Ratnamani Metals Tubes | GACM Technologies vs. Spencers Retail Limited | GACM Technologies vs. Indian Metals Ferro | GACM Technologies vs. V Mart Retail Limited |
| Salzer Electronics vs. Sukhjit Starch Chemicals | Salzer Electronics vs. Radiant Cash Management | Salzer Electronics vs. Fertilizers and Chemicals | Salzer Electronics vs. HDFC Asset Management |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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