Correlation Between Daifuku and Golden Star
Can any of the company-specific risk be diversified away by investing in both Daifuku 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 Daifuku and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daifuku Co and Golden Star Resource, you can compare the effects of market volatilities on Daifuku 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 Daifuku with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daifuku and Golden Star.
Diversification Opportunities for Daifuku and Golden Star
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daifuku and Golden is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Daifuku Co and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource and Daifuku 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 Daifuku Co 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 Resource has no effect on the direction of Daifuku i.e., Daifuku and Golden Star go up and down completely randomly.
Pair Corralation between Daifuku and Golden Star
If you would invest 115.00 in Golden Star Resource on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Golden Star Resource or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Daifuku Co vs. Golden Star Resource
Performance |
| Timeline |
| Daifuku |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Golden Star Resource |
Daifuku and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daifuku and Golden Star
The main advantage of trading using opposite Daifuku and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daifuku 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.The idea behind Daifuku Co and Golden Star Resource 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.| Golden Star vs. Itron Inc | Golden Star vs. Omega Healthcare Investors | Golden Star vs. Blacksky Technology | Golden Star vs. Red Cat Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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