Correlation Between Golden Heaven and Bill
Can any of the company-specific risk be diversified away by investing in both Golden Heaven and Bill 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 Heaven and Bill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Heaven Group and Bill Com Holdings, you can compare the effects of market volatilities on Golden Heaven and Bill 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 Heaven with a short position of Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Heaven and Bill.
Diversification Opportunities for Golden Heaven and Bill
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golden and Bill is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Golden Heaven Group and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and Golden Heaven 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 Heaven Group are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Golden Heaven i.e., Golden Heaven and Bill go up and down completely randomly.
Pair Corralation between Golden Heaven and Bill
Given the investment horizon of 90 days Golden Heaven Group is expected to under-perform the Bill. In addition to that, Golden Heaven is 2.74 times more volatile than Bill Com Holdings. It trades about -0.07 of its total potential returns per unit of risk. Bill Com Holdings is currently generating about -0.01 per unit of volatility. If you would invest 12,927 in Bill Com Holdings on September 12, 2024 and sell it today you would lose (3,961) from holding Bill Com Holdings or give up 30.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Heaven Group vs. Bill Com Holdings
Performance |
| Timeline |
| Golden Heaven Group |
| Bill Com Holdings |
Golden Heaven and Bill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Heaven and Bill
The main advantage of trading using opposite Golden Heaven and Bill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Heaven position performs unexpectedly, Bill 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 Bill will offset losses from the drop in Bill's long position.| Golden Heaven vs. Bill Com Holdings | Golden Heaven vs. Sapiens International | Golden Heaven vs. VirnetX Holding Corp | Golden Heaven vs. NextNav Warrant |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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