Correlation Between Hindustan Foods and GACM Technologies
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By analyzing existing cross correlation between Hindustan Foods Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Hindustan Foods 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 Hindustan Foods with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hindustan Foods and GACM Technologies.
Diversification Opportunities for Hindustan Foods and GACM Technologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hindustan and GACM is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hindustan Foods 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 Hindustan Foods 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 Hindustan Foods 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 Hindustan Foods i.e., Hindustan Foods and GACM Technologies go up and down completely randomly.
Pair Corralation between Hindustan Foods and GACM Technologies
Assuming the 90 days trading horizon Hindustan Foods Limited is expected to under-perform the GACM Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Hindustan Foods Limited is 1.18 times less risky than GACM Technologies. The stock trades about -0.66 of its potential returns per unit of risk. The GACM Technologies Limited is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 97.00 in GACM Technologies Limited on October 16, 2024 and sell it today you would lose (5.00) from holding GACM Technologies Limited or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hindustan Foods Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Hindustan Foods |
| GACM Technologies |
Hindustan Foods and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hindustan Foods and GACM Technologies
The main advantage of trading using opposite Hindustan Foods and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hindustan Foods 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.| Hindustan Foods vs. EMBASSY OFFICE PARKS | Hindustan Foods vs. Punjab National Bank | Hindustan Foods vs. ICICI Bank Limited | Hindustan Foods vs. The Federal Bank |
| GACM Technologies vs. Hindustan Foods Limited | GACM Technologies vs. Patanjali Foods Limited | GACM Technologies vs. Varun Beverages Limited | GACM Technologies vs. Speciality Restaurants 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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