Correlation Between GACM Technologies and Linc
Specify exactly 2 symbols:
By analyzing existing cross correlation between GACM Technologies Limited and Linc Limited, you can compare the effects of market volatilities on GACM Technologies and Linc 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 GACM Technologies with a short position of Linc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Linc.
Diversification Opportunities for GACM Technologies and Linc
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between GACM and Linc is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Linc Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linc Limited and GACM Technologies 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 GACM Technologies Limited are associated (or correlated) with Linc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linc Limited has no effect on the direction of GACM Technologies i.e., GACM Technologies and Linc go up and down completely randomly.
Pair Corralation between GACM Technologies and Linc
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Linc. But the stock apears to be less risky and, when comparing its historical volatility, GACM Technologies Limited is 14.12 times less risky than Linc. The stock trades about -0.2 of its potential returns per unit of risk. The Linc Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,977 in Linc Limited on September 23, 2024 and sell it today you would earn a total of 9,263 from holding Linc Limited or generate 92.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 73.77% |
Values | Daily Returns |
GACM Technologies Limited vs. Linc Limited
Performance |
Timeline |
GACM Technologies |
Linc Limited |
GACM Technologies and Linc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GACM Technologies and Linc
The main advantage of trading using opposite GACM Technologies and Linc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Linc 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 Linc will offset losses from the drop in Linc's long position.GACM Technologies vs. Bajaj Holdings Investment | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. Nippon Life India | GACM Technologies vs. 360 ONE WAM |
Linc vs. Kingfa Science Technology | Linc vs. Rico Auto Industries | Linc vs. GACM Technologies Limited | Linc vs. COSMO FIRST 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |