Correlation Between GACM Technologies and UCO Bank
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By analyzing existing cross correlation between GACM Technologies Limited and UCO Bank, you can compare the effects of market volatilities on GACM Technologies and UCO Bank 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 UCO Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and UCO Bank.
Diversification Opportunities for GACM Technologies and UCO Bank
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GACM and UCO is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and UCO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCO Bank 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 UCO Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCO Bank has no effect on the direction of GACM Technologies i.e., GACM Technologies and UCO Bank go up and down completely randomly.
Pair Corralation between GACM Technologies and UCO Bank
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 0.96 times more return on investment than UCO Bank. However, GACM Technologies Limited is 1.05 times less risky than UCO Bank. It trades about -0.05 of its potential returns per unit of risk. UCO Bank is currently generating about -0.09 per unit of risk. If you would invest 102.00 in GACM Technologies Limited on October 16, 2024 and sell it today you would lose (10.00) from holding GACM Technologies Limited or give up 9.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GACM Technologies Limited vs. UCO Bank
Performance |
Timeline |
GACM Technologies |
UCO Bank |
GACM Technologies and UCO Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GACM Technologies and UCO Bank
The main advantage of trading using opposite GACM Technologies and UCO Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, UCO Bank 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 UCO Bank will offset losses from the drop in UCO Bank's long position.GACM Technologies vs. Hindustan Foods 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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