Correlation Between GACM Technologies and SEPC
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By analyzing existing cross correlation between GACM Technologies Limited and SEPC Limited, you can compare the effects of market volatilities on GACM Technologies and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and SEPC.
Diversification Opportunities for GACM Technologies and SEPC
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and SEPC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC Limited 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and SEPC go up and down completely randomly.
Pair Corralation between GACM Technologies and SEPC
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.35 times more return on investment than SEPC. However, GACM Technologies Limited is 2.87 times less risky than SEPC. It trades about -0.18 of its potential returns per unit of risk. SEPC Limited is currently generating about -0.38 per unit of risk. If you would invest 95.00 in GACM Technologies Limited on October 9, 2024 and sell it today you would lose (3.00) from holding GACM Technologies Limited or give up 3.16% 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. SEPC Limited
Performance |
| Timeline |
| GACM Technologies |
| SEPC Limited |
GACM Technologies and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and SEPC
The main advantage of trading using opposite GACM Technologies and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.| GACM Technologies vs. Kavveri Telecom Products | GACM Technologies vs. Tata Communications Limited | GACM Technologies vs. UCO Bank | GACM Technologies vs. City Union Bank |
| SEPC vs. Touchwood Entertainment Limited | SEPC vs. DJ Mediaprint Logistics | SEPC vs. Computer Age Management | SEPC vs. Entertainment Network 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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