Correlation Between 63 Moons and GACM Technologies

Can any of the company-specific risk be diversified away by investing in both 63 Moons and GACM Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 63 Moons and GACM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 63 moons technologies and GACM Technologies Limited, you can compare the effects of market volatilities on 63 Moons 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 63 Moons with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 63 Moons and GACM Technologies.

Diversification Opportunities for 63 Moons and GACM Technologies

-0.07

Correlation Coefficient

63 Moons  GACM Technologies

Good diversification

The 3 months correlation between 63MOONS and GACM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding 63 moons technologies and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and 63 Moons 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 63 moons technologies 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 63 Moons i.e., 63 Moons and GACM Technologies go up and down completely randomly.

Pair Corralation between 63 Moons and GACM Technologies

Assuming the 90 days trading horizon 63 moons technologies is expected to generate 1.56 times more return on investment than GACM Technologies. However, 63 Moons is 1.56 times more volatile than GACM Technologies Limited. It trades about 0.36 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.06 per unit of risk. If you would invest  38,260  in 63 moons technologies on October 8, 2024 and sell it today you would earn a total of  52,435  from holding 63 moons technologies or generate 137.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

63 moons technologies  vs.  GACM Technologies Limited

63 moons technologies

Risk-Adjusted Performance

28 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in 63 moons technologies are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, 63 Moons unveiled solid returns over the last few months and may actually be approaching a breakup point.

GACM Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GACM Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with 63 Moons and GACM Technologies

The main advantage of trading using opposite 63 Moons and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 63 Moons 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.

The idea behind 63 moons technologies and GACM Technologies Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.