Correlation Between GACM Technologies and Par Drugs

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

Diversification Opportunities for GACM Technologies and Par Drugs

0.11

Correlation Coefficient

GACM Technologies  Par Drugs

Average diversification

The 3 months correlation between GACM and Par is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Par Drugs And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Drugs 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 Par Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Drugs And has no effect on the direction of GACM Technologies i.e., GACM Technologies and Par Drugs go up and down completely randomly.

Pair Corralation between GACM Technologies and Par Drugs

Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Par Drugs. In addition to that, GACM Technologies is 2.14 times more volatile than Par Drugs And. It trades about -0.17 of its total potential returns per unit of risk. Par Drugs And is currently generating about 0.09 per unit of volatility. If you would invest  10,647  in Par Drugs And on April 24, 2025 and sell it today you would earn a total of  1,061  from holding Par Drugs And or generate 9.97% return on investment over 90 days.

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

GACM Technologies Limited  vs.  Par Drugs And

GACM Technologies

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Par Drugs And

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Par Drugs And are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Par Drugs may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GACM Technologies and Par Drugs

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

The idea behind GACM Technologies Limited and Par Drugs 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.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.