Correlation Between GM Breweries and Computer Age
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By analyzing existing cross correlation between GM Breweries Limited and Computer Age Management, you can compare the effects of market volatilities on GM Breweries and Computer Age 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 GM Breweries with a short position of Computer Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM Breweries and Computer Age.
Diversification Opportunities for GM Breweries and Computer Age
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GMBREW and Computer is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GM Breweries Limited and Computer Age Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Age Management and GM Breweries 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 GM Breweries Limited are associated (or correlated) with Computer Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Age Management has no effect on the direction of GM Breweries i.e., GM Breweries and Computer Age go up and down completely randomly.
Pair Corralation between GM Breweries and Computer Age
Assuming the 90 days trading horizon GM Breweries is expected to generate 1.18 times less return on investment than Computer Age. In addition to that, GM Breweries is 1.27 times more volatile than Computer Age Management. It trades about 0.07 of its total potential returns per unit of risk. Computer Age Management is currently generating about 0.11 per unit of volatility. If you would invest 351,438 in Computer Age Management on September 1, 2024 and sell it today you would earn a total of 141,402 from holding Computer Age Management or generate 40.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GM Breweries Limited vs. Computer Age Management
Performance |
| Timeline |
| GM Breweries Limited |
| Computer Age Management |
GM Breweries and Computer Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM Breweries and Computer Age
The main advantage of trading using opposite GM Breweries and Computer Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM Breweries position performs unexpectedly, Computer Age 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 Computer Age will offset losses from the drop in Computer Age's long position.| GM Breweries vs. Indian Metals Ferro | GM Breweries vs. Ankit Metal Power | GM Breweries vs. Pritish Nandy Communications | GM Breweries vs. Music Broadcast Limited |
| Computer Age vs. Newgen Software Technologies | Computer Age vs. AVALON TECHNOLOGIES LTD | Computer Age vs. Sasken Technologies Limited | Computer Age vs. Orient Technologies 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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