Correlation Between Patanjali Foods and GACM Technologies
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By analyzing existing cross correlation between Patanjali Foods Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Patanjali Foods 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 Patanjali Foods with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patanjali Foods and GACM Technologies.
Diversification Opportunities for Patanjali Foods and GACM Technologies
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Patanjali and GACM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Patanjali Foods 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 Patanjali Foods 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 Patanjali Foods 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 Patanjali Foods i.e., Patanjali Foods and GACM Technologies go up and down completely randomly.
Pair Corralation between Patanjali Foods and GACM Technologies
Assuming the 90 days trading horizon Patanjali Foods Limited is expected to generate 1.42 times more return on investment than GACM Technologies. However, Patanjali Foods is 1.42 times more volatile than GACM Technologies Limited. It trades about -0.11 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.26 per unit of risk. If you would invest 183,485 in Patanjali Foods Limited on October 16, 2024 and sell it today you would lose (5,845) from holding Patanjali Foods Limited or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patanjali Foods Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Patanjali Foods |
| GACM Technologies |
Patanjali Foods and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patanjali Foods and GACM Technologies
The main advantage of trading using opposite Patanjali Foods and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patanjali Foods 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.| Patanjali Foods vs. DCM Financial Services | Patanjali Foods vs. Allied Blenders Distillers | Patanjali Foods vs. Motilal Oswal Financial | Patanjali Foods vs. Asian Hotels Limited |
| GACM Technologies vs. Hindustan Foods Limited | GACM Technologies vs. Patanjali Foods Limited | GACM Technologies vs. Varun Beverages Limited | GACM Technologies vs. Speciality Restaurants 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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