Correlation Between Salzer Electronics and GACM Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Salzer Electronics Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Salzer Electronics 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 Salzer Electronics with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and GACM Technologies.
Diversification Opportunities for Salzer Electronics and GACM Technologies
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salzer and GACM is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics 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 Salzer Electronics 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 Salzer Electronics 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 Salzer Electronics i.e., Salzer Electronics and GACM Technologies go up and down completely randomly.
Pair Corralation between Salzer Electronics and GACM Technologies
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 0.81 times more return on investment than GACM Technologies. However, Salzer Electronics Limited is 1.24 times less risky than GACM Technologies. It trades about 0.1 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.03 per unit of risk. If you would invest 106,780 in Salzer Electronics Limited on September 1, 2024 and sell it today you would earn a total of 5,010 from holding Salzer Electronics Limited or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Salzer Electronics Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Salzer Electronics |
| GACM Technologies |
Salzer Electronics and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and GACM Technologies
The main advantage of trading using opposite Salzer Electronics and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics 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.| Salzer Electronics vs. Modi Rubber Limited | Salzer Electronics vs. Gokul Refoils and | Salzer Electronics vs. Shyam Metalics and | Salzer Electronics vs. Sarthak Metals Limited |
| GACM Technologies vs. Hindcon Chemicals Limited | GACM Technologies vs. Cartrade Tech Limited | GACM Technologies vs. Osia Hyper Retail | GACM Technologies vs. Thirumalai Chemicals 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |