Correlation Between Electronic Arts and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both Electronic Arts 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 Electronic Arts and Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Golden Matrix Group, you can compare the effects of market volatilities on Electronic Arts 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 Electronic Arts with a short position of Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Golden Matrix.
Diversification Opportunities for Electronic Arts and Golden Matrix
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Electronic and Golden is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts 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 Electronic Arts 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 Electronic Arts 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 Electronic Arts i.e., Electronic Arts and Golden Matrix go up and down completely randomly.
Pair Corralation between Electronic Arts and Golden Matrix
Allowing for the 90-day total investment horizon Electronic Arts is expected to generate 3.21 times less return on investment than Golden Matrix. But when comparing it to its historical volatility, Electronic Arts is 4.69 times less risky than Golden Matrix. It trades about 0.05 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Golden Matrix Group on August 26, 2024 and sell it today you would earn a total of 40.00 from holding Golden Matrix Group or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronic Arts vs. Golden Matrix Group
Performance |
| Timeline |
| Electronic Arts |
| Golden Matrix Group |
Electronic Arts and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Golden Matrix
The main advantage of trading using opposite Electronic Arts and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts 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.| Electronic Arts vs. Playstudios | Electronic Arts vs. Talkspace | Electronic Arts vs. Katapult Holdings Equity | Electronic Arts vs. Aquagold International |
| Golden Matrix vs. AEye Inc | Golden Matrix vs. Arqit Quantum Warrants | Golden Matrix vs. Xos Equity Warrants |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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