Correlation Between GACM Technologies and Praxis Home
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By analyzing existing cross correlation between GACM Technologies Limited and Praxis Home Retail, you can compare the effects of market volatilities on GACM Technologies and Praxis Home 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 Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Praxis Home.
Diversification Opportunities for GACM Technologies and Praxis Home
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GACM and Praxis is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Praxis Home Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Home 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 Praxis Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Home Retail has no effect on the direction of GACM Technologies i.e., GACM Technologies and Praxis Home go up and down completely randomly.
Pair Corralation between GACM Technologies and Praxis Home
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.81 times more return on investment than Praxis Home. However, GACM Technologies Limited is 1.24 times less risky than Praxis Home. It trades about 0.09 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.15 per unit of risk. If you would invest 87.00 in GACM Technologies Limited on October 24, 2024 and sell it today you would earn a total of 11.00 from holding GACM Technologies Limited or generate 12.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GACM Technologies Limited vs. Praxis Home Retail
Performance |
Timeline |
GACM Technologies |
Praxis Home Retail |
GACM Technologies and Praxis Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GACM Technologies and Praxis Home
The main advantage of trading using opposite GACM Technologies and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Praxis Home 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 Praxis Home will offset losses from the drop in Praxis Home's long position.GACM Technologies vs. Sarveshwar Foods Limited | GACM Technologies vs. Hindustan Foods Limited | GACM Technologies vs. Apex Frozen Foods | GACM Technologies vs. AXISCADES Technologies Limited |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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