Correlation Between Golden Agri and Minerva SA
Can any of the company-specific risk be diversified away by investing in both Golden Agri and Minerva SA 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 and Minerva SA 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 Minerva SA, you can compare the effects of market volatilities on Golden Agri and Minerva SA 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 with a short position of Minerva SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Agri and Minerva SA.
Diversification Opportunities for Golden Agri and Minerva SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Golden and Minerva is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Agri Resources and Minerva SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerva SA and Golden Agri 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 Minerva SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerva SA has no effect on the direction of Golden Agri i.e., Golden Agri and Minerva SA go up and down completely randomly.
Pair Corralation between Golden Agri and Minerva SA
Assuming the 90 days horizon Golden Agri Resources is expected to generate 0.65 times more return on investment than Minerva SA. However, Golden Agri Resources is 1.54 times less risky than Minerva SA. It trades about 0.02 of its potential returns per unit of risk. Minerva SA is currently generating about -0.02 per unit of risk. If you would invest 1,939 in Golden Agri Resources on September 12, 2024 and sell it today you would earn a total of 141.00 from holding Golden Agri Resources or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 78.63% |
| Values | Daily Returns |
Golden Agri Resources vs. Minerva SA
Performance |
| Timeline |
| Golden Agri Resources |
| Minerva SA |
Golden Agri and Minerva SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Agri and Minerva SA
The main advantage of trading using opposite Golden Agri and Minerva SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Agri position performs unexpectedly, Minerva SA 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 Minerva SA will offset losses from the drop in Minerva SA's long position.| Golden Agri vs. Global Clean Energy | Golden Agri vs. Edible Garden AG | Golden Agri vs. Local Bounti Corp | Golden Agri vs. Village Farms International |
| Minerva SA vs. Golden Agri Resources | Minerva SA vs. SalMar ASA | Minerva SA vs. Wilmar International | Minerva SA vs. Brasilagro Adr |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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