Correlation Between GACM Technologies and Shipping
Specify exactly 2 symbols:
By analyzing existing cross correlation between GACM Technologies Limited and Shipping, you can compare the effects of market volatilities on GACM Technologies and Shipping 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 Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Shipping.
Diversification Opportunities for GACM Technologies and Shipping
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Shipping is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shipping 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 Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shipping has no effect on the direction of GACM Technologies i.e., GACM Technologies and Shipping go up and down completely randomly.
Pair Corralation between GACM Technologies and Shipping
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Shipping. In addition to that, GACM Technologies is 1.14 times more volatile than Shipping. It trades about -0.04 of its total potential returns per unit of risk. Shipping is currently generating about 0.17 per unit of volatility. If you would invest 21,328 in Shipping on September 4, 2024 and sell it today you would earn a total of 2,100 from holding Shipping or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Shipping
Performance |
| Timeline |
| GACM Technologies |
| Shipping |
GACM Technologies and Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Shipping
The main advantage of trading using opposite GACM Technologies and Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Shipping 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 Shipping will offset losses from the drop in Shipping's long position.| GACM Technologies vs. Hindcon Chemicals Limited | GACM Technologies vs. Tips Music Limited | GACM Technologies vs. Sanginita Chemicals Limited | GACM Technologies vs. Landmark Cars Limited |
| Shipping vs. Ortel Communications Limited | Shipping vs. Agro Tech Foods | Shipping vs. Tamilnadu Telecommunication Limited | Shipping vs. Megastar Foods 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |