Correlation Between Sure Tech and Gamatronic Electronic

Can any of the company-specific risk be diversified away by investing in both Sure Tech and Gamatronic Electronic 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 Sure Tech and Gamatronic Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sure Tech Investments LP and Gamatronic Electronic Industries, you can compare the effects of market volatilities on Sure Tech and Gamatronic Electronic 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 Sure Tech with a short position of Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Gamatronic Electronic.

Diversification Opportunities for Sure Tech and Gamatronic Electronic

-0.47

Correlation Coefficient

Sure Tech  Gamatronic Electronic

Very good diversification

The 3 months correlation between Sure and Gamatronic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic and Sure Tech 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 Sure Tech Investments LP are associated (or correlated) with Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of Sure Tech i.e., Sure Tech and Gamatronic Electronic go up and down completely randomly.

Pair Corralation between Sure Tech and Gamatronic Electronic

Assuming the 90 days trading horizon Sure Tech Investments LP is expected to under-perform the Gamatronic Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Sure Tech Investments LP is 1.31 times less risky than Gamatronic Electronic. The stock trades about -0.22 of its potential returns per unit of risk. The Gamatronic Electronic Industries is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  118,100  in Gamatronic Electronic Industries on April 25, 2025 and sell it today you would earn a total of  24,100  from holding Gamatronic Electronic Industries or generate 20.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	91.67%
Values	Daily Returns

Sure Tech Investments LP  vs.  Gamatronic Electronic Industri

Sure Tech Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sure Tech Investments LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Gamatronic Electronic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gamatronic Electronic Industries are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gamatronic Electronic sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sure Tech and Gamatronic Electronic

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

The idea behind Sure Tech Investments LP and Gamatronic Electronic Industries 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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.