Correlation Between GACM Technologies and Osia Hyper

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

Diversification Opportunities for GACM Technologies and Osia Hyper

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between GACM and Osia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies Limited and Osia Hyper Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osia Hyper Retail 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 Osia Hyper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osia Hyper Retail has no effect on the direction of GACM Technologies i.e., GACM Technologies and Osia Hyper go up and down completely randomly.

Pair Corralation between GACM Technologies and Osia Hyper

Assuming the 90 days trading horizon GACM Technologies is expected to generate 18.34 times less return on investment than Osia Hyper. But when comparing it to its historical volatility, GACM Technologies Limited is 1.46 times less risky than Osia Hyper. It trades about 0.01 of its potential returns per unit of risk. Osia Hyper Retail is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,441  in Osia Hyper Retail on August 22, 2025 and sell it today you would earn a total of  560.00  from holding Osia Hyper Retail or generate 38.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

GACM Technologies Limited  vs.  Osia Hyper Retail

 Performance 
       Timeline  
GACM Technologies 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GACM Technologies Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, GACM Technologies is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Osia Hyper Retail 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Osia Hyper Retail are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Osia Hyper reported solid returns over the last few months and may actually be approaching a breakup point.

GACM Technologies and Osia Hyper Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GACM Technologies and Osia Hyper

The main advantage of trading using opposite GACM Technologies and Osia Hyper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies position performs unexpectedly, Osia Hyper 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 Osia Hyper will offset losses from the drop in Osia Hyper's long position.
The idea behind GACM Technologies Limited and Osia Hyper Retail 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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