Correlation Between JGCHEMICALS and GACM Technologies
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and GACM Technologies Limited, you can compare the effects of market volatilities on JGCHEMICALS 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 JGCHEMICALS with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and GACM Technologies.
Diversification Opportunities for JGCHEMICALS and GACM Technologies
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between JGCHEMICALS and GACM is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS 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 JGCHEMICALS 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 JGCHEMICALS 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 JGCHEMICALS i.e., JGCHEMICALS and GACM Technologies go up and down completely randomly.
Pair Corralation between JGCHEMICALS and GACM Technologies
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.16 times more return on investment than GACM Technologies. However, JGCHEMICALS is 1.16 times more volatile than GACM Technologies Limited. It trades about 0.1 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 18,480 in JGCHEMICALS LIMITED on October 18, 2024 and sell it today you would earn a total of 18,035 from holding JGCHEMICALS LIMITED or generate 97.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.95% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. GACM Technologies Limited
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| GACM Technologies |
JGCHEMICALS and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and GACM Technologies
The main advantage of trading using opposite JGCHEMICALS and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS 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.| JGCHEMICALS vs. Cyber Media Research | JGCHEMICALS vs. Vertoz Advertising Limited | JGCHEMICALS vs. Paramount Communications Limited | JGCHEMICALS vs. Ortel Communications Limited |
| GACM Technologies vs. Fertilizers and Chemicals | GACM Technologies vs. JGCHEMICALS LIMITED | GACM Technologies vs. Vishnu Chemicals Limited | GACM Technologies vs. Omkar Speciality Chemicals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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