Correlation Between SAL Steel and GACM Technologies
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By analyzing existing cross correlation between SAL Steel Limited and GACM Technologies Limited, you can compare the effects of market volatilities on SAL Steel 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 SAL Steel with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAL Steel and GACM Technologies.
Diversification Opportunities for SAL Steel and GACM Technologies
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAL and GACM is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SAL Steel 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 SAL Steel 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 SAL Steel 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 SAL Steel i.e., SAL Steel and GACM Technologies go up and down completely randomly.
Pair Corralation between SAL Steel and GACM Technologies
Assuming the 90 days trading horizon SAL Steel Limited is expected to generate 0.9 times more return on investment than GACM Technologies. However, SAL Steel Limited is 1.11 times less risky than GACM Technologies. It trades about 0.01 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.2 per unit of risk. If you would invest 2,310 in SAL Steel Limited on October 11, 2024 and sell it today you would lose (59.00) from holding SAL Steel Limited or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.13% |
| Values | Daily Returns |
SAL Steel Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| SAL Steel Limited |
| GACM Technologies |
SAL Steel and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAL Steel and GACM Technologies
The main advantage of trading using opposite SAL Steel and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAL Steel 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.| SAL Steel vs. NMDC Limited | SAL Steel vs. Steel Authority of | SAL Steel vs. Embassy Office Parks | SAL Steel vs. Jai Balaji Industries |
| GACM Technologies vs. Golden Tobacco Limited | GACM Technologies vs. SAL Steel Limited | GACM Technologies vs. Prakash Steelage Limited | GACM Technologies vs. Mahamaya Steel Industries |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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