Correlation Between GACM Technologies and Swelect Energy
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By analyzing existing cross correlation between GACM Technologies Limited and Swelect Energy Systems, you can compare the effects of market volatilities on GACM Technologies and Swelect Energy 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 Swelect Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Swelect Energy.
Diversification Opportunities for GACM Technologies and Swelect Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GACM and Swelect is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Swelect Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swelect Energy Systems 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 Swelect Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swelect Energy Systems has no effect on the direction of GACM Technologies i.e., GACM Technologies and Swelect Energy go up and down completely randomly.
Pair Corralation between GACM Technologies and Swelect Energy
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.64 times more return on investment than Swelect Energy. However, GACM Technologies Limited is 1.55 times less risky than Swelect Energy. It trades about -0.19 of its potential returns per unit of risk. Swelect Energy Systems is currently generating about -0.43 per unit of risk. If you would invest 96.00 in GACM Technologies Limited on October 12, 2024 and sell it today you would lose (4.00) from holding GACM Technologies Limited or give up 4.17% 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. Swelect Energy Systems
Performance |
| Timeline |
| GACM Technologies |
| Swelect Energy Systems |
GACM Technologies and Swelect Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Swelect Energy
The main advantage of trading using opposite GACM Technologies and Swelect Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Swelect Energy 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 Swelect Energy will offset losses from the drop in Swelect Energy's long position.| GACM Technologies vs. Karur Vysya Bank | GACM Technologies vs. Diligent Media | GACM Technologies vs. Shemaroo Entertainment Limited | GACM Technologies vs. Spandana Sphoorty Financial |
| Swelect Energy vs. Kingfa Science Technology | Swelect Energy vs. Rico Auto Industries | Swelect Energy vs. GACM Technologies Limited | Swelect Energy 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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