Correlation Between GTL and GACM Technologies
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By analyzing existing cross correlation between GTL Limited and GACM Technologies Limited, you can compare the effects of market volatilities on GTL and GACM Technologies 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 GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and GACM Technologies.
Diversification Opportunities for GTL and GACM Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GTL and GACM is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies 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 GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of GTL i.e., GTL and GACM Technologies go up and down completely randomly.
Pair Corralation between GTL and GACM Technologies
Assuming the 90 days trading horizon GTL Limited is expected to generate 1.17 times more return on investment than GACM Technologies. However, GTL is 1.17 times more volatile than GACM Technologies Limited. It trades about 0.04 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.21 per unit of risk. If you would invest 875.00 in GTL Limited on August 30, 2024 and sell it today you would earn a total of 420.00 from holding GTL Limited or generate 48.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.29% |
| Values | Daily Returns |
GTL Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| GTL Limited |
| GACM Technologies |
GTL and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and GACM Technologies
The main advantage of trading using opposite GTL and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL position performs unexpectedly, GACM Technologies 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 GACM Technologies will offset losses from the drop in GACM Technologies' long position.| GTL vs. SINCLAIRS HOTELS ORD | GTL vs. Usha Martin Education | GTL vs. Global Education Limited | GTL vs. G Tec Jainx Education |
| GACM Technologies vs. Cambridge Technology Enterprises | GACM Technologies vs. Manaksia Coated Metals | GACM Technologies vs. Shyam Metalics and | GACM Technologies vs. Compucom Software 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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