Correlation Between Golden Star and Blue Whale
Can any of the company-specific risk be diversified away by investing in both Golden Star and Blue Whale 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 Blue Whale 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 Blue Whale Acquisition, you can compare the effects of market volatilities on Golden Star and Blue Whale 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 Blue Whale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and Blue Whale.
Diversification Opportunities for Golden Star and Blue Whale
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Blue is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and Blue Whale Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Whale Acquisition 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 Blue Whale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Whale Acquisition has no effect on the direction of Golden Star i.e., Golden Star and Blue Whale go up and down completely randomly.
Pair Corralation between Golden Star and Blue Whale
If you would invest 1,123 in Golden Star Acquisition on September 12, 2024 and sell it today you would earn a total of 26.00 from holding Golden Star Acquisition or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Golden Star Acquisition vs. Blue Whale Acquisition
Performance |
| Timeline |
| Golden Star Acquisition |
| Blue Whale Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Star and Blue Whale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and Blue Whale
The main advantage of trading using opposite Golden Star and Blue Whale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, Blue Whale 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 Blue Whale will offset losses from the drop in Blue Whale's long position.| Golden Star vs. Afya | Golden Star vs. Cebu Air ADR | Golden Star vs. Ryanair Holdings PLC | Golden Star vs. Westinghouse Air Brake |
| Blue Whale vs. Mars Acquisition Corp | Blue Whale vs. Israel Acquisitions Corp | Blue Whale vs. Golden Star Acquisition | Blue Whale vs. Welsbach Technology Metals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |