Correlation Between GACM Technologies and Osia Hyper

Can any of the company-specific risk be diversified away by investing in both GACM Technologies and Osia Hyper 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 GACM Technologies and Osia Hyper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GACM Technologies Limited and Osia Hyper Retail, you can compare the effects of market volatilities on GACM Technologies and Osia Hyper 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 Osia Hyper. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Osia Hyper.

Diversification Opportunities for GACM Technologies and Osia Hyper

-0.02

Correlation Coefficient

GACM Technologies  Osia Hyper

Good diversification

The 3 months correlation between GACM and Osia is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Osia Hyper Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osia Hyper Retail 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 Osia Hyper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osia Hyper Retail has no effect on the direction of GACM Technologies i.e., GACM Technologies and Osia Hyper go up and down completely randomly.

Pair Corralation between GACM Technologies and Osia Hyper

Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Osia Hyper. In addition to that, GACM Technologies is 1.33 times more volatile than Osia Hyper Retail. It trades about -0.3 of its total potential returns per unit of risk. Osia Hyper Retail is currently generating about 0.04 per unit of volatility. If you would invest  3,511  in Osia Hyper Retail on September 3, 2024 and sell it today you would earn a total of  140.00  from holding Osia Hyper Retail or generate 3.99% return on investment over 90 days.

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

GACM Technologies Limited  vs.  Osia Hyper Retail

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 weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Osia Hyper Retail

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Osia Hyper Retail are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Osia Hyper is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with GACM Technologies and Osia Hyper

The main advantage of trading using opposite GACM Technologies and Osia Hyper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Osia Hyper 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 Osia Hyper will offset losses from the drop in Osia Hyper's long position.

The idea behind GACM Technologies Limited and Osia Hyper Retail 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.