Correlation Between GACM Technologies and VIP Clothing
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By analyzing existing cross correlation between GACM Technologies Limited and VIP Clothing Limited, you can compare the effects of market volatilities on GACM Technologies and VIP Clothing 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 VIP Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and VIP Clothing.
Diversification Opportunities for GACM Technologies and VIP Clothing
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and VIP is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and VIP Clothing Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIP Clothing 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 VIP Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIP Clothing Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and VIP Clothing go up and down completely randomly.
Pair Corralation between GACM Technologies and VIP Clothing
Assuming the 90 days trading horizon GACM Technologies is expected to generate 57.34 times less return on investment than VIP Clothing. But when comparing it to its historical volatility, GACM Technologies Limited is 1.03 times less risky than VIP Clothing. It trades about 0.0 of its potential returns per unit of risk. VIP Clothing Limited is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,218 in VIP Clothing Limited on September 4, 2024 and sell it today you would earn a total of 475.00 from holding VIP Clothing Limited or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. VIP Clothing Limited
Performance |
| Timeline |
| GACM Technologies |
| VIP Clothing Limited |
GACM Technologies and VIP Clothing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and VIP Clothing
The main advantage of trading using opposite GACM Technologies and VIP Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, VIP Clothing 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 VIP Clothing will offset losses from the drop in VIP Clothing'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 |
| VIP Clothing vs. Kingfa Science Technology | VIP Clothing vs. Rico Auto Industries | VIP Clothing vs. GACM Technologies Limited | VIP Clothing 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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