Correlation Between Shipping and GACM Technologies
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By analyzing existing cross correlation between Shipping and GACM Technologies Limited, you can compare the effects of market volatilities on Shipping 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 Shipping with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shipping and GACM Technologies.
Diversification Opportunities for Shipping and GACM Technologies
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shipping and GACM is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shipping and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Shipping 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 Shipping 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 Shipping i.e., Shipping and GACM Technologies go up and down completely randomly.
Pair Corralation between Shipping and GACM Technologies
Assuming the 90 days trading horizon Shipping is expected to generate 0.92 times more return on investment than GACM Technologies. However, Shipping is 1.09 times less risky than GACM Technologies. It trades about 0.17 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.11 per unit of risk. If you would invest 21,328 in Shipping on September 3, 2024 and sell it today you would earn a total of 2,159 from holding Shipping or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shipping vs. GACM Technologies Limited
Performance |
| Timeline |
| Shipping |
| GACM Technologies |
Shipping and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shipping and GACM Technologies
The main advantage of trading using opposite Shipping and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shipping 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.| Shipping vs. Sintex Plastics Technology | Shipping vs. Shyam Metalics and | Shipping vs. Hilton Metal Forging | Shipping vs. Sonata Software Limited |
| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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