Correlation Between Hathway Cable and GACM Technologies
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By analyzing existing cross correlation between Hathway Cable Datacom and GACM Technologies Limited, you can compare the effects of market volatilities on Hathway Cable 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 Hathway Cable with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hathway Cable and GACM Technologies.
Diversification Opportunities for Hathway Cable and GACM Technologies
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hathway and GACM is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hathway Cable Datacom and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Hathway Cable 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 Hathway Cable Datacom 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 Hathway Cable i.e., Hathway Cable and GACM Technologies go up and down completely randomly.
Pair Corralation between Hathway Cable and GACM Technologies
Assuming the 90 days trading horizon Hathway Cable Datacom is expected to under-perform the GACM Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Hathway Cable Datacom is 1.57 times less risky than GACM Technologies. The stock trades about -0.19 of its potential returns per unit of risk. The GACM Technologies Limited is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 92.00 in GACM Technologies Limited on August 30, 2024 and sell it today you would lose (4.00) from holding GACM Technologies Limited or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hathway Cable Datacom vs. GACM Technologies Limited
Performance |
| Timeline |
| Hathway Cable Datacom |
| GACM Technologies |
Hathway Cable and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hathway Cable and GACM Technologies
The main advantage of trading using opposite Hathway Cable and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hathway Cable 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.| Hathway Cable vs. The Orissa Minerals | Hathway Cable vs. DSJ Keep Learning | Hathway Cable vs. Malu Paper Mills | Hathway Cable vs. Kingfa Science Technology |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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