Correlation Between Gokul Refoils and Compucom Software

Can any of the company-specific risk be diversified away by investing in both Gokul Refoils and Compucom Software 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 Gokul Refoils and Compucom Software into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gokul Refoils and and Compucom Software Limited, you can compare the effects of market volatilities on Gokul Refoils and Compucom Software 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 Gokul Refoils with a short position of Compucom Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gokul Refoils and Compucom Software.

Diversification Opportunities for Gokul Refoils and Compucom Software

0.94

Correlation Coefficient

Gokul Refoils  Compucom Software

Almost no diversification

The 3 months correlation between Gokul and Compucom is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gokul Refoils and and Compucom Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compucom Software and Gokul Refoils 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 Gokul Refoils and are associated (or correlated) with Compucom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compucom Software has no effect on the direction of Gokul Refoils i.e., Gokul Refoils and Compucom Software go up and down completely randomly.

Pair Corralation between Gokul Refoils and Compucom Software

Assuming the 90 days trading horizon Gokul Refoils and is expected to generate 0.64 times more return on investment than Compucom Software. However, Gokul Refoils and is 1.56 times less risky than Compucom Software. It trades about -0.17 of its potential returns per unit of risk. Compucom Software Limited is currently generating about -0.15 per unit of risk. If you would invest  6,252  in Gokul Refoils and on December 27, 2024 and sell it today you would lose (1,671) from holding Gokul Refoils and or give up 26.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Gokul Refoils and  vs.  Compucom Software Limited

Gokul Refoils

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gokul Refoils and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Compucom Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compucom Software Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Gokul Refoils and Compucom Software

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

The idea behind Gokul Refoils and and Compucom Software Limited 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.