Correlation Between Kamat Hotels and GACM Technologies
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By analyzing existing cross correlation between Kamat Hotels Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Kamat Hotels 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 Kamat Hotels with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamat Hotels and GACM Technologies.
Diversification Opportunities for Kamat Hotels and GACM Technologies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kamat and GACM is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kamat Hotels 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 Kamat Hotels 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 Kamat Hotels 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 Kamat Hotels i.e., Kamat Hotels and GACM Technologies go up and down completely randomly.
Pair Corralation between Kamat Hotels and GACM Technologies
Assuming the 90 days trading horizon Kamat Hotels Limited is expected to generate 0.76 times more return on investment than GACM Technologies. However, Kamat Hotels Limited is 1.32 times less risky than GACM Technologies. It trades about -0.05 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.08 per unit of risk. If you would invest 21,864 in Kamat Hotels Limited on August 29, 2024 and sell it today you would lose (768.00) from holding Kamat Hotels Limited or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamat Hotels Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Kamat Hotels Limited |
| GACM Technologies |
Kamat Hotels and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamat Hotels and GACM Technologies
The main advantage of trading using opposite Kamat Hotels and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamat Hotels 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.| Kamat Hotels vs. MMTC Limited | Kamat Hotels vs. Kingfa Science Technology | Kamat Hotels vs. Rico Auto Industries | Kamat Hotels vs. GACM Technologies Limited |
| GACM Technologies vs. Future Retail Limited | GACM Technologies vs. Embassy Office Parks | GACM Technologies vs. General Insurance | GACM Technologies vs. EMBASSY OFFICE PARKS |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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