Correlation Between GACM Technologies and Sapphire Foods
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By analyzing existing cross correlation between GACM Technologies Limited and Sapphire Foods India, you can compare the effects of market volatilities on GACM Technologies and Sapphire Foods 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 Sapphire Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Sapphire Foods.
Diversification Opportunities for GACM Technologies and Sapphire Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between GACM and Sapphire is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Sapphire Foods India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapphire Foods India 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 Sapphire Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapphire Foods India has no effect on the direction of GACM Technologies i.e., GACM Technologies and Sapphire Foods go up and down completely randomly.
Pair Corralation between GACM Technologies and Sapphire Foods
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Sapphire Foods. But the stock apears to be less risky and, when comparing its historical volatility, GACM Technologies Limited is 8.85 times less risky than Sapphire Foods. The stock trades about -0.2 of its potential returns per unit of risk. The Sapphire Foods India is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 27,950 in Sapphire Foods India on September 5, 2024 and sell it today you would earn a total of 5,860 from holding Sapphire Foods India or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.11% |
| Values | Daily Returns |
GACM Technologies Limited vs. Sapphire Foods India
Performance |
| Timeline |
| GACM Technologies |
| Sapphire Foods India |
GACM Technologies and Sapphire Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Sapphire Foods
The main advantage of trading using opposite GACM Technologies and Sapphire Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Sapphire Foods 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 Sapphire Foods will offset losses from the drop in Sapphire Foods' 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 |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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