Correlation Between GACM Technologies and Xchanging Solutions
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By analyzing existing cross correlation between GACM Technologies Limited and Xchanging Solutions Limited, you can compare the effects of market volatilities on GACM Technologies and Xchanging Solutions 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 Xchanging Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Xchanging Solutions.
Diversification Opportunities for GACM Technologies and Xchanging Solutions
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GACM and Xchanging is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Xchanging Solutions Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xchanging Solutions 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 Xchanging Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xchanging Solutions has no effect on the direction of GACM Technologies i.e., GACM Technologies and Xchanging Solutions go up and down completely randomly.
Pair Corralation between GACM Technologies and Xchanging Solutions
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Xchanging Solutions. In addition to that, GACM Technologies is 2.38 times more volatile than Xchanging Solutions Limited. It trades about -0.08 of its total potential returns per unit of risk. Xchanging Solutions Limited is currently generating about -0.04 per unit of volatility. If you would invest 10,904 in Xchanging Solutions Limited on August 29, 2024 and sell it today you would lose (144.00) from holding Xchanging Solutions Limited or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Xchanging Solutions Limited
Performance |
| Timeline |
| GACM Technologies |
| Xchanging Solutions |
GACM Technologies and Xchanging Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Xchanging Solutions
The main advantage of trading using opposite GACM Technologies and Xchanging Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Xchanging Solutions 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 Xchanging Solutions will offset losses from the drop in Xchanging Solutions' long position.| GACM Technologies vs. Future Retail Limited | GACM Technologies vs. Embassy Office Parks | GACM Technologies vs. General Insurance | GACM Technologies vs. EMBASSY OFFICE PARKS |
| Xchanging Solutions vs. Kingfa Science Technology | Xchanging Solutions vs. Rico Auto Industries | Xchanging Solutions vs. GACM Technologies Limited | Xchanging Solutions 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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