Correlation Between Manaksia Coated and GACM Technologies
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By analyzing existing cross correlation between Manaksia Coated Metals and GACM Technologies Limited, you can compare the effects of market volatilities on Manaksia Coated 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 Manaksia Coated with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Coated and GACM Technologies.
Diversification Opportunities for Manaksia Coated and GACM Technologies
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manaksia and GACM is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Coated Metals and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Manaksia Coated 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 Manaksia Coated Metals 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 Manaksia Coated i.e., Manaksia Coated and GACM Technologies go up and down completely randomly.
Pair Corralation between Manaksia Coated and GACM Technologies
Assuming the 90 days trading horizon Manaksia Coated Metals is expected to under-perform the GACM Technologies. In addition to that, Manaksia Coated is 1.17 times more volatile than GACM Technologies Limited. It trades about -0.45 of its total potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.14 per unit of volatility. If you would invest 94.00 in GACM Technologies Limited on November 28, 2024 and sell it today you would lose (6.00) from holding GACM Technologies Limited or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manaksia Coated Metals vs. GACM Technologies Limited
Performance |
| Timeline |
| Manaksia Coated Metals |
| GACM Technologies |
Manaksia Coated and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manaksia Coated and GACM Technologies
The main advantage of trading using opposite Manaksia Coated and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Coated 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.| Manaksia Coated vs. Fertilizers and Chemicals | Manaksia Coated vs. One 97 Communications | Manaksia Coated vs. Neogen Chemicals Limited | Manaksia Coated vs. Paramount Communications Limited |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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