Correlation Between Afya and Golden Star
Can any of the company-specific risk be diversified away by investing in both Afya and Golden Star 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 Afya and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afya and Golden Star Acquisition, you can compare the effects of market volatilities on Afya and Golden Star 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 Afya with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and Golden Star.
Diversification Opportunities for Afya and Golden Star
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Afya and Golden is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Afya and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition and Afya 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 Afya are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Afya i.e., Afya and Golden Star go up and down completely randomly.
Pair Corralation between Afya and Golden Star
Given the investment horizon of 90 days Afya is expected to under-perform the Golden Star. In addition to that, Afya is 3.11 times more volatile than Golden Star Acquisition. It trades about -0.22 of its total potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.05 per unit of volatility. If you would invest 1,140 in Golden Star Acquisition on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Golden Star Acquisition or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afya vs. Golden Star Acquisition
Performance |
| Timeline |
| Afya |
| Golden Star Acquisition |
Afya and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and Golden Star
The main advantage of trading using opposite Afya and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
| Golden Star vs. Franklin Wireless Corp | Golden Star vs. Tower One Wireless | Golden Star vs. Iridium Communications | Golden Star vs. Western Digital |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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