Correlation Between GACM Technologies and Speciality Restaurants
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By analyzing existing cross correlation between GACM Technologies Limited and Speciality Restaurants Limited, you can compare the effects of market volatilities on GACM Technologies and Speciality Restaurants 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 Speciality Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Speciality Restaurants.
Diversification Opportunities for GACM Technologies and Speciality Restaurants
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Speciality is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Speciality Restaurants Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speciality Restaurants 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 Speciality Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speciality Restaurants has no effect on the direction of GACM Technologies i.e., GACM Technologies and Speciality Restaurants go up and down completely randomly.
Pair Corralation between GACM Technologies and Speciality Restaurants
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 1.55 times more return on investment than Speciality Restaurants. However, GACM Technologies is 1.55 times more volatile than Speciality Restaurants Limited. It trades about 0.36 of its potential returns per unit of risk. Speciality Restaurants Limited is currently generating about -0.12 per unit of risk. If you would invest 85.00 in GACM Technologies Limited on September 23, 2024 and sell it today you would earn a total of 13.00 from holding GACM Technologies Limited or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Speciality Restaurants Limited
Performance |
| Timeline |
| GACM Technologies |
| Speciality Restaurants |
GACM Technologies and Speciality Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Speciality Restaurants
The main advantage of trading using opposite GACM Technologies and Speciality Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Speciality Restaurants 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 Speciality Restaurants will offset losses from the drop in Speciality Restaurants' 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 |
| Speciality Restaurants vs. Kingfa Science Technology | Speciality Restaurants vs. Rico Auto Industries | Speciality Restaurants vs. GACM Technologies Limited | Speciality Restaurants vs. COSMO FIRST 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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