Correlation Between Golden Matrix and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both Golden Matrix and GameSquare Holdings 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 Matrix and GameSquare Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Matrix Group and GameSquare Holdings, you can compare the effects of market volatilities on Golden Matrix and GameSquare Holdings 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 Matrix with a short position of GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and GameSquare Holdings.
Diversification Opportunities for Golden Matrix and GameSquare Holdings
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and GameSquare is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings and Golden Matrix 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 Matrix Group are associated (or correlated) with GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of Golden Matrix i.e., Golden Matrix and GameSquare Holdings go up and down completely randomly.
Pair Corralation between Golden Matrix and GameSquare Holdings
Given the investment horizon of 90 days Golden Matrix Group is expected to generate 0.84 times more return on investment than GameSquare Holdings. However, Golden Matrix Group is 1.19 times less risky than GameSquare Holdings. It trades about 0.16 of its potential returns per unit of risk. GameSquare Holdings is currently generating about 0.13 per unit of risk. If you would invest 231.00 in Golden Matrix Group on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Golden Matrix Group or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Matrix Group vs. GameSquare Holdings
Performance |
| Timeline |
| Golden Matrix Group |
| GameSquare Holdings |
Golden Matrix and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and GameSquare Holdings
The main advantage of trading using opposite Golden Matrix and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
| GameSquare Holdings vs. AEye Inc | GameSquare Holdings vs. Arqit Quantum Warrants | GameSquare Holdings vs. Xos Equity Warrants |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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