Correlation Between Malu Paper and GACM Technologies
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By analyzing existing cross correlation between Malu Paper Mills and GACM Technologies Limited, you can compare the effects of market volatilities on Malu Paper 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 Malu Paper with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malu Paper and GACM Technologies.
Diversification Opportunities for Malu Paper and GACM Technologies
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Malu and GACM is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Malu Paper Mills and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Malu Paper 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 Malu Paper Mills 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 Malu Paper i.e., Malu Paper and GACM Technologies go up and down completely randomly.
Pair Corralation between Malu Paper and GACM Technologies
Assuming the 90 days trading horizon Malu Paper Mills is expected to generate 1.0 times more return on investment than GACM Technologies. However, Malu Paper Mills is 1.0 times less risky than GACM Technologies. It trades about 0.06 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.22 per unit of risk. If you would invest 3,575 in Malu Paper Mills on August 30, 2024 and sell it today you would earn a total of 846.00 from holding Malu Paper Mills or generate 23.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malu Paper Mills vs. GACM Technologies Limited
Performance |
| Timeline |
| Malu Paper Mills |
| GACM Technologies |
Malu Paper and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malu Paper and GACM Technologies
The main advantage of trading using opposite Malu Paper and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malu Paper 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.| Malu Paper vs. NMDC Limited | Malu Paper vs. Steel Authority of | Malu Paper vs. Embassy Office Parks | Malu Paper vs. Gujarat Narmada Valley |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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