Correlation Between GACM Technologies and Centum Electronics
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By analyzing existing cross correlation between GACM Technologies Limited and Centum Electronics Limited, you can compare the effects of market volatilities on GACM Technologies and Centum Electronics 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 Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Centum Electronics.
Diversification Opportunities for GACM Technologies and Centum Electronics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and Centum is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics 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 Centum Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centum Electronics has no effect on the direction of GACM Technologies i.e., GACM Technologies and Centum Electronics go up and down completely randomly.
Pair Corralation between GACM Technologies and Centum Electronics
Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Centum Electronics. In addition to that, GACM Technologies is 1.01 times more volatile than Centum Electronics Limited. It trades about -0.2 of its total potential returns per unit of risk. Centum Electronics Limited is currently generating about 0.08 per unit of volatility. If you would invest 68,494 in Centum Electronics Limited on September 24, 2024 and sell it today you would earn a total of 144,641 from holding Centum Electronics Limited or generate 211.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 73.77% |
Values | Daily Returns |
GACM Technologies Limited vs. Centum Electronics Limited
Performance |
Timeline |
GACM Technologies |
Centum Electronics |
GACM Technologies and Centum Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GACM Technologies and Centum Electronics
The main advantage of trading using opposite GACM Technologies and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Centum Electronics 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 Centum Electronics will offset losses from the drop in Centum Electronics' 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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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