Correlation Between GACM Technologies and Rajshree Sugars

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

Diversification Opportunities for GACM Technologies and Rajshree Sugars

0.13

Correlation Coefficient

GACM Technologies  Rajshree Sugars

Average diversification

The 3 months correlation between GACM and Rajshree is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Rajshree Sugars Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rajshree Sugars Chemicals 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 Rajshree Sugars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rajshree Sugars Chemicals has no effect on the direction of GACM Technologies i.e., GACM Technologies and Rajshree Sugars go up and down completely randomly.

Pair Corralation between GACM Technologies and Rajshree Sugars

Assuming the 90 days trading horizon GACM Technologies Limited is expected to under-perform the Rajshree Sugars. In addition to that, GACM Technologies is 1.79 times more volatile than Rajshree Sugars Chemicals. It trades about -0.2 of its total potential returns per unit of risk. Rajshree Sugars Chemicals is currently generating about -0.01 per unit of volatility. If you would invest  4,862  in Rajshree Sugars Chemicals on April 20, 2025 and sell it today you would lose (151.00) from holding Rajshree Sugars Chemicals or give up 3.11% of portfolio value over 90 days.

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

GACM Technologies Limited  vs.  Rajshree Sugars Chemicals

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 inconsistent 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.

Rajshree Sugars Chemicals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rajshree Sugars Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Rajshree Sugars is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GACM Technologies and Rajshree Sugars

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

The idea behind GACM Technologies Limited and Rajshree Sugars Chemicals 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.