Correlation Between GACM Technologies and MIC Electronics
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By analyzing existing cross correlation between GACM Technologies Limited and MIC Electronics Limited, you can compare the effects of market volatilities on GACM Technologies and MIC 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 MIC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and MIC Electronics.
Diversification Opportunities for GACM Technologies and MIC Electronics
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GACM and MIC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and MIC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIC 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 MIC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIC Electronics has no effect on the direction of GACM Technologies i.e., GACM Technologies and MIC Electronics go up and down completely randomly.
Pair Corralation between GACM Technologies and MIC Electronics
Assuming the 90 days trading horizon GACM Technologies Limited is expected to generate 1.12 times more return on investment than MIC Electronics. However, GACM Technologies is 1.12 times more volatile than MIC Electronics Limited. It trades about -0.07 of its potential returns per unit of risk. MIC Electronics Limited is currently generating about -0.08 per unit of risk. If you would invest 110.00 in GACM Technologies Limited on September 26, 2024 and sell it today you would lose (16.00) from holding GACM Technologies Limited or give up 14.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GACM Technologies Limited vs. MIC Electronics Limited
Performance |
Timeline |
GACM Technologies |
MIC Electronics |
GACM Technologies and MIC Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GACM Technologies and MIC Electronics
The main advantage of trading using opposite GACM Technologies and MIC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, MIC 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 MIC Electronics will offset losses from the drop in MIC 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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