Correlation Between GACM Technologies and Taj GVK
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By analyzing existing cross correlation between GACM Technologies Limited and Taj GVK Hotels, you can compare the effects of market volatilities on GACM Technologies and Taj GVK 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 Taj GVK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Taj GVK.
Diversification Opportunities for GACM Technologies and Taj GVK
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and Taj is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Taj GVK Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taj GVK Hotels 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 Taj GVK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taj GVK Hotels has no effect on the direction of GACM Technologies i.e., GACM Technologies and Taj GVK go up and down completely randomly.
Pair Corralation between GACM Technologies and Taj GVK
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Taj GVK. In addition to that, GACM Technologies is 1.22 times more volatile than Taj GVK Hotels. It trades about -0.05 of its total potential returns per unit of risk. Taj GVK Hotels is currently generating about 0.24 per unit of volatility. If you would invest 29,690 in Taj GVK Hotels on August 30, 2024 and sell it today you would earn a total of 4,210 from holding Taj GVK Hotels or generate 14.18% 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. Taj GVK Hotels
Performance |
| Timeline |
| GACM Technologies |
| Taj GVK Hotels |
GACM Technologies and Taj GVK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Taj GVK
The main advantage of trading using opposite GACM Technologies and Taj GVK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Taj GVK 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 Taj GVK will offset losses from the drop in Taj GVK's long position.The idea behind GACM Technologies Limited and Taj GVK Hotels pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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