Correlation Between Speciality Restaurants and GACM Technologies
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By analyzing existing cross correlation between Speciality Restaurants Limited and GACM Technologies Limited, you can compare the effects of market volatilities on Speciality Restaurants 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 Speciality Restaurants with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speciality Restaurants and GACM Technologies.
Diversification Opportunities for Speciality Restaurants and GACM Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Speciality and GACM is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Speciality Restaurants 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 Speciality Restaurants 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 Speciality Restaurants 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 Speciality Restaurants i.e., Speciality Restaurants and GACM Technologies go up and down completely randomly.
Pair Corralation between Speciality Restaurants and GACM Technologies
Assuming the 90 days trading horizon Speciality Restaurants Limited is expected to under-perform the GACM Technologies. In addition to that, Speciality Restaurants is 1.05 times more volatile than GACM Technologies Limited. It trades about -0.35 of its total potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.26 per unit of volatility. If you would invest 97.00 in GACM Technologies Limited on October 16, 2024 and sell it today you would lose (5.00) from holding GACM Technologies Limited or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Speciality Restaurants Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| Speciality Restaurants |
| GACM Technologies |
Speciality Restaurants and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speciality Restaurants and GACM Technologies
The main advantage of trading using opposite Speciality Restaurants and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speciality Restaurants 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.| Speciality Restaurants vs. HDFC Asset Management | Speciality Restaurants vs. Tata Communications Limited | Speciality Restaurants vs. HT Media Limited | Speciality Restaurants vs. Network18 Media Investments |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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