Correlation Between Golden Agri-Resources and Predictmedix
Can any of the company-specific risk be diversified away by investing in both Golden Agri-Resources and Predictmedix 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 Predictmedix 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 Predictmedix, you can compare the effects of market volatilities on Golden Agri-Resources and Predictmedix 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 Predictmedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Agri-Resources and Predictmedix.
Diversification Opportunities for Golden Agri-Resources and Predictmedix
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Predictmedix is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Golden Agri Resources and Predictmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictmedix 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 Predictmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictmedix has no effect on the direction of Golden Agri-Resources i.e., Golden Agri-Resources and Predictmedix go up and down completely randomly.
Pair Corralation between Golden Agri-Resources and Predictmedix
Assuming the 90 days horizon Golden Agri Resources is expected to under-perform the Predictmedix. But the pink sheet apears to be less risky and, when comparing its historical volatility, Golden Agri Resources is 11.36 times less risky than Predictmedix. The pink sheet trades about -0.32 of its potential returns per unit of risk. The Predictmedix is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Predictmedix on September 1, 2024 and sell it today you would lose (0.40) from holding Predictmedix or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Agri Resources vs. Predictmedix
Performance |
| Timeline |
| Golden Agri Resources |
| Predictmedix |
Golden Agri-Resources and Predictmedix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Agri-Resources and Predictmedix
The main advantage of trading using opposite Golden Agri-Resources and Predictmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Agri-Resources position performs unexpectedly, Predictmedix 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 Predictmedix will offset losses from the drop in Predictmedix'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 |
| Predictmedix vs. Biomerica | Predictmedix vs. Co Diagnostics | Predictmedix vs. Senseonics Holdings | Predictmedix vs. Cytosorbents Crp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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