Correlation Between GTL and Compucom Software
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By analyzing existing cross correlation between GTL Limited and Compucom Software Limited, you can compare the effects of market volatilities on GTL and Compucom Software 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 GTL with a short position of Compucom Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and Compucom Software.
Diversification Opportunities for GTL and Compucom Software
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GTL and Compucom is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and Compucom Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compucom Software and GTL 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 GTL Limited are associated (or correlated) with Compucom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compucom Software has no effect on the direction of GTL i.e., GTL and Compucom Software go up and down completely randomly.
Pair Corralation between GTL and Compucom Software
Assuming the 90 days trading horizon GTL Limited is expected to generate 1.08 times more return on investment than Compucom Software. However, GTL is 1.08 times more volatile than Compucom Software Limited. It trades about 0.06 of its potential returns per unit of risk. Compucom Software Limited is currently generating about 0.04 per unit of risk. If you would invest 645.00 in GTL Limited on August 31, 2024 and sell it today you would earn a total of 642.00 from holding GTL Limited or generate 99.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
GTL Limited vs. Compucom Software Limited
Performance |
| Timeline |
| GTL Limited |
| Compucom Software |
GTL and Compucom Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and Compucom Software
The main advantage of trading using opposite GTL and Compucom Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL position performs unexpectedly, Compucom Software 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 Compucom Software will offset losses from the drop in Compucom Software's long position.| GTL vs. UTI Asset Management | GTL vs. Reliance Communications Limited | GTL vs. Melstar Information Technologies | GTL vs. Hathway Cable Datacom |
| Compucom Software vs. Kingfa Science Technology | Compucom Software vs. GTL Limited | Compucom Software vs. Indo Amines Limited | Compucom Software vs. HDFC Mutual Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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