Correlation Between ZF Commercial and GACM Technologies
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By analyzing existing cross correlation between ZF Commercial Vehicle and GACM Technologies Limited, you can compare the effects of market volatilities on ZF Commercial 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 ZF Commercial with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZF Commercial and GACM Technologies.
Diversification Opportunities for ZF Commercial and GACM Technologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZFCVINDIA and GACM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ZF Commercial Vehicle and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and ZF Commercial 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 ZF Commercial Vehicle 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 ZF Commercial i.e., ZF Commercial and GACM Technologies go up and down completely randomly.
Pair Corralation between ZF Commercial and GACM Technologies
Assuming the 90 days trading horizon ZF Commercial Vehicle is expected to generate 0.62 times more return on investment than GACM Technologies. However, ZF Commercial Vehicle is 1.61 times less risky than GACM Technologies. It trades about 0.04 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 881,113 in ZF Commercial Vehicle on September 14, 2024 and sell it today you would earn a total of 287,752 from holding ZF Commercial Vehicle or generate 32.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.19% |
| Values | Daily Returns |
ZF Commercial Vehicle vs. GACM Technologies Limited
Performance |
| Timeline |
| ZF Commercial Vehicle |
| GACM Technologies |
ZF Commercial and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZF Commercial and GACM Technologies
The main advantage of trading using opposite ZF Commercial and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZF Commercial 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.| ZF Commercial vs. One 97 Communications | ZF Commercial vs. United Drilling Tools | ZF Commercial vs. Pritish Nandy Communications | ZF Commercial vs. Healthcare Global Enterprises |
| GACM Technologies vs. Cantabil Retail India | GACM Technologies vs. Sonata Software Limited | GACM Technologies vs. Palred Technologies Limited | GACM Technologies vs. ZF Commercial Vehicle |
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 CEOs Directory module to screen CEOs from public companies around the world.
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