Correlation Between Golden Developing and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Golden Developing and Maple Leaf 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 Golden Developing and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Developing Solutions and Maple Leaf Green, you can compare the effects of market volatilities on Golden Developing and Maple Leaf 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 Golden Developing with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Developing and Maple Leaf.
Diversification Opportunities for Golden Developing and Maple Leaf
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Maple is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Golden Developing Solutions and Maple Leaf Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Green and Golden Developing 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 Golden Developing Solutions are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Green has no effect on the direction of Golden Developing i.e., Golden Developing and Maple Leaf go up and down completely randomly.
Pair Corralation between Golden Developing and Maple Leaf
If you would invest 3.50 in Maple Leaf Green on August 28, 2024 and sell it today you would lose (0.11) from holding Maple Leaf Green or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Developing Solutions vs. Maple Leaf Green
Performance |
| Timeline |
| Golden Developing |
| Maple Leaf Green |
Golden Developing and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Developing and Maple Leaf
The main advantage of trading using opposite Golden Developing and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Developing position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Golden Developing vs. Cann American Corp | Golden Developing vs. GelStat Corp | Golden Developing vs. Green Cures Botanical | Golden Developing vs. Rimrock Gold Corp |
| Maple Leaf vs. Rezolute | Maple Leaf vs. Tempest Therapeutics | Maple Leaf vs. Forte Biosciences | Maple Leaf vs. Dyadic International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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