Correlation Between AMCON Distributing and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Golden Matrix 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 AMCON Distributing and Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Golden Matrix Group, you can compare the effects of market volatilities on AMCON Distributing and Golden Matrix 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 AMCON Distributing with a short position of Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Golden Matrix.
Diversification Opportunities for AMCON Distributing and Golden Matrix
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMCON and Golden is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group and AMCON Distributing 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 AMCON Distributing are associated (or correlated) with Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Golden Matrix go up and down completely randomly.
Pair Corralation between AMCON Distributing and Golden Matrix
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Golden Matrix. But the stock apears to be less risky and, when comparing its historical volatility, AMCON Distributing is 1.29 times less risky than Golden Matrix. The stock trades about -0.02 of its potential returns per unit of risk. The Golden Matrix Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Golden Matrix Group on August 28, 2024 and sell it today you would lose (9.00) from holding Golden Matrix Group or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Golden Matrix Group
Performance |
| Timeline |
| AMCON Distributing |
| Golden Matrix Group |
AMCON Distributing and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Golden Matrix
The main advantage of trading using opposite AMCON Distributing and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Golden Matrix 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 Matrix will offset losses from the drop in Golden Matrix's long position.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Rocky Brands |
| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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