Correlation Between Electronics Mart and GACM Technologies
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By analyzing existing cross correlation between Electronics Mart India and GACM Technologies Limited, you can compare the effects of market volatilities on Electronics Mart 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 Electronics Mart with a short position of GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and GACM Technologies.
Diversification Opportunities for Electronics Mart and GACM Technologies
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electronics and GACM is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies and Electronics Mart 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 Electronics Mart India 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 Electronics Mart i.e., Electronics Mart and GACM Technologies go up and down completely randomly.
Pair Corralation between Electronics Mart and GACM Technologies
Assuming the 90 days trading horizon Electronics Mart India is expected to under-perform the GACM Technologies. In addition to that, Electronics Mart is 1.03 times more volatile than GACM Technologies Limited. It trades about -0.13 of its total potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.04 per unit of volatility. If you would invest 100.00 in GACM Technologies Limited on October 7, 2024 and sell it today you would lose (8.00) from holding GACM Technologies Limited or give up 8.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Electronics Mart India vs. GACM Technologies Limited
Performance |
Timeline |
Electronics Mart India |
GACM Technologies |
Electronics Mart and GACM Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Electronics Mart and GACM Technologies
The main advantage of trading using opposite Electronics Mart and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart 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.Electronics Mart vs. NMDC Steel Limited | Electronics Mart vs. Tamilnadu Telecommunication Limited | Electronics Mart vs. Visa Steel Limited | Electronics Mart vs. The Hi Tech Gears |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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