Correlation Between FirstCash and Golden Star
Can any of the company-specific risk be diversified away by investing in both FirstCash 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 FirstCash and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FirstCash and Golden Star Acquisition, you can compare the effects of market volatilities on FirstCash 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 FirstCash with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstCash and Golden Star.
Diversification Opportunities for FirstCash and Golden Star
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FirstCash and Golden is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding FirstCash 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 FirstCash 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 FirstCash 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 FirstCash i.e., FirstCash and Golden Star go up and down completely randomly.
Pair Corralation between FirstCash and Golden Star
Given the investment horizon of 90 days FirstCash is expected to generate 1.04 times less return on investment than Golden Star. In addition to that, FirstCash is 11.09 times more volatile than Golden Star Acquisition. It trades about 0.02 of its total potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.22 per unit of volatility. If you would invest 1,117 in Golden Star Acquisition on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Golden Star Acquisition or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FirstCash vs. Golden Star Acquisition
Performance |
| Timeline |
| FirstCash |
| Golden Star Acquisition |
FirstCash and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FirstCash and Golden Star
The main advantage of trading using opposite FirstCash and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FirstCash 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.| FirstCash vs. Visa Class A | FirstCash vs. PayPal Holdings | FirstCash vs. Upstart Holdings | FirstCash vs. Mastercard |
| Golden Star vs. Visa Class A | Golden Star vs. Diamond Hill Investment | Golden Star vs. Distoken Acquisition | Golden Star vs. AllianceBernstein Holding LP |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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