Correlation Between Golden Matrix and Rocky Brands
Can any of the company-specific risk be diversified away by investing in both Golden Matrix and Rocky Brands 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 Rocky Brands 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 Rocky Brands, you can compare the effects of market volatilities on Golden Matrix and Rocky Brands 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 Rocky Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and Rocky Brands.
Diversification Opportunities for Golden Matrix and Rocky Brands
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golden and Rocky is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and Rocky Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocky Brands 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 Rocky Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocky Brands has no effect on the direction of Golden Matrix i.e., Golden Matrix and Rocky Brands go up and down completely randomly.
Pair Corralation between Golden Matrix and Rocky Brands
Given the investment horizon of 90 days Golden Matrix Group is expected to generate 1.23 times more return on investment than Rocky Brands. However, Golden Matrix is 1.23 times more volatile than Rocky Brands. It trades about 0.03 of its potential returns per unit of risk. Rocky Brands is currently generating about 0.03 per unit of risk. If you would invest 227.00 in Golden Matrix Group on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Golden Matrix Group or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Matrix Group vs. Rocky Brands
Performance |
| Timeline |
| Golden Matrix Group |
| Rocky Brands |
Golden Matrix and Rocky Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and Rocky Brands
The main advantage of trading using opposite Golden Matrix and Rocky Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix position performs unexpectedly, Rocky Brands 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 Rocky Brands will offset losses from the drop in Rocky Brands' long position.| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
| Rocky Brands vs. Vera Bradley | Rocky Brands vs. Steven Madden | Rocky Brands vs. Wolverine World Wide | Rocky Brands vs. Caleres |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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