Correlation Between Krebs Biochemicals and GACM Technologies
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By analyzing existing cross correlation between Krebs Biochemicals and and GACM Technologies Limited, you can compare the effects of market volatilities on Krebs Biochemicals 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 Krebs Biochemicals with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krebs Biochemicals and GACM Technologies.
Diversification Opportunities for Krebs Biochemicals and GACM Technologies
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Krebs and GACM is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Krebs Biochemicals and and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Krebs Biochemicals 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 Krebs Biochemicals and 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 Krebs Biochemicals i.e., Krebs Biochemicals and GACM Technologies go up and down completely randomly.
Pair Corralation between Krebs Biochemicals and GACM Technologies
Assuming the 90 days trading horizon Krebs Biochemicals and is expected to generate 2.23 times more return on investment than GACM Technologies. However, Krebs Biochemicals is 2.23 times more volatile than GACM Technologies Limited. It trades about 0.18 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.11 per unit of risk. If you would invest 8,437 in Krebs Biochemicals and on September 3, 2024 and sell it today you would earn a total of 1,977 from holding Krebs Biochemicals and or generate 23.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Krebs Biochemicals and vs. GACM Technologies Limited
Performance |
| Timeline |
| Krebs Biochemicals and |
| GACM Technologies |
Krebs Biochemicals and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krebs Biochemicals and GACM Technologies
The main advantage of trading using opposite Krebs Biochemicals and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krebs Biochemicals 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.| Krebs Biochemicals vs. Sapphire Foods India | Krebs Biochemicals vs. Agarwal Industrial | Krebs Biochemicals vs. NRB Industrial Bearings | Krebs Biochemicals vs. Sarthak Metals Limited |
| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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