Correlation Between Golden Agri-Resources and Paramount Global
Can any of the company-specific risk be diversified away by investing in both Golden Agri-Resources and Paramount Global 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 Agri-Resources and Paramount Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Agri Resources and Paramount Global, you can compare the effects of market volatilities on Golden Agri-Resources and Paramount Global 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 Agri-Resources with a short position of Paramount Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Agri-Resources and Paramount Global.
Diversification Opportunities for Golden Agri-Resources and Paramount Global
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Golden and Paramount is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Golden Agri Resources and Paramount Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paramount Global and Golden Agri-Resources 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 Agri Resources are associated (or correlated) with Paramount Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paramount Global has no effect on the direction of Golden Agri-Resources i.e., Golden Agri-Resources and Paramount Global go up and down completely randomly.
Pair Corralation between Golden Agri-Resources and Paramount Global
If you would invest 2,227 in Paramount Global on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Paramount Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Golden Agri Resources vs. Paramount Global
Performance |
| Timeline |
| Golden Agri Resources |
| Paramount Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Agri-Resources and Paramount Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Agri-Resources and Paramount Global
The main advantage of trading using opposite Golden Agri-Resources and Paramount Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Agri-Resources position performs unexpectedly, Paramount Global 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 Paramount Global will offset losses from the drop in Paramount Global's long position.| Golden Agri-Resources vs. Wilmar International | Golden Agri-Resources vs. SLC Agricola SA | Golden Agri-Resources vs. Brasilagro Adr | Golden Agri-Resources vs. Alico Inc |
| Paramount Global vs. Paramount Global Class | Paramount Global vs. Qurate Retail | Paramount Global vs. ATT Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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