Correlation Between Golden Star and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Golden Star and SCOR PK 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 Star and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Star Acquisition and SCOR PK, you can compare the effects of market volatilities on Golden Star and SCOR PK 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 Star with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and SCOR PK.
Diversification Opportunities for Golden Star and SCOR PK
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and SCOR is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and Golden Star 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 Star Acquisition are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Golden Star i.e., Golden Star and SCOR PK go up and down completely randomly.
Pair Corralation between Golden Star and SCOR PK
Given the investment horizon of 90 days Golden Star Acquisition is expected to generate 2.21 times more return on investment than SCOR PK. However, Golden Star is 2.21 times more volatile than SCOR PK. It trades about 0.33 of its potential returns per unit of risk. SCOR PK is currently generating about 0.1 per unit of risk. If you would invest 1,124 in Golden Star Acquisition on October 23, 2024 and sell it today you would earn a total of 475.00 from holding Golden Star Acquisition or generate 42.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Star Acquisition vs. SCOR PK
Performance |
| Timeline |
| Golden Star Acquisition |
| SCOR PK |
Golden Star and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and SCOR PK
The main advantage of trading using opposite Golden Star and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Golden Star vs. Getty Realty | Golden Star vs. Enersys | Golden Star vs. Gildan Activewear | Golden Star vs. Weyco Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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