Correlation Between Golden Matrix and SohuCom
Can any of the company-specific risk be diversified away by investing in both Golden Matrix and SohuCom 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 SohuCom 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 SohuCom, you can compare the effects of market volatilities on Golden Matrix and SohuCom 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 SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and SohuCom.
Diversification Opportunities for Golden Matrix and SohuCom
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golden and SohuCom is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom 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 SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of Golden Matrix i.e., Golden Matrix and SohuCom go up and down completely randomly.
Pair Corralation between Golden Matrix and SohuCom
Given the investment horizon of 90 days Golden Matrix Group is expected to generate 2.12 times more return on investment than SohuCom. However, Golden Matrix is 2.12 times more volatile than SohuCom. It trades about 0.16 of its potential returns per unit of risk. SohuCom is currently generating about -0.24 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Matrix Group vs. SohuCom
Performance |
| Timeline |
| Golden Matrix Group |
| SohuCom |
Golden Matrix and SohuCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and SohuCom
The main advantage of trading using opposite Golden Matrix and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom's long position.| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
| SohuCom vs. Snail, Class A | SohuCom vs. Playstudios | SohuCom vs. Playtika Holding Corp | SohuCom vs. Doubledown Interactive Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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