Correlation Between GACM Technologies and LLOYDS METALS

Can any of the company-specific risk be diversified away by investing in both GACM Technologies and LLOYDS METALS 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 LLOYDS METALS 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 LLOYDS METALS AND, you can compare the effects of market volatilities on GACM Technologies and LLOYDS METALS 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 LLOYDS METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and LLOYDS METALS.

Diversification Opportunities for GACM Technologies and LLOYDS METALS

-0.75

Correlation Coefficient

GACM Technologies  LLOYDS METALS

Pay attention - limited upside

The 3 months correlation between GACM and LLOYDS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and LLOYDS METALS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS METALS AND 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 LLOYDS METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS METALS AND has no effect on the direction of GACM Technologies i.e., GACM Technologies and LLOYDS METALS go up and down completely randomly.

Pair Corralation between GACM Technologies and LLOYDS METALS

Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the LLOYDS METALS. In addition to that, GACM Technologies is 1.3 times more volatile than LLOYDS METALS AND. It trades about -0.16 of its total potential returns per unit of risk. LLOYDS METALS AND is currently generating about 0.26 per unit of volatility. If you would invest  75,430  in LLOYDS METALS AND on September 12, 2024 and sell it today you would earn a total of  36,345  from holding LLOYDS METALS AND or generate 48.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

GACM Technologies Limited  vs.  LLOYDS METALS AND

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.

LLOYDS METALS AND

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in LLOYDS METALS AND are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, LLOYDS METALS displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GACM Technologies and LLOYDS METALS

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

The idea behind GACM Technologies Limited and LLOYDS METALS AND 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.