Correlation Between Golden Star and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Golden Star and ClimateRock 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 ClimateRock 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 ClimateRock Class A, you can compare the effects of market volatilities on Golden Star and ClimateRock 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 ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and ClimateRock.
Diversification Opportunities for Golden Star and ClimateRock
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and ClimateRock is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class 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 ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Golden Star i.e., Golden Star and ClimateRock go up and down completely randomly.
Pair Corralation between Golden Star and ClimateRock
Assuming the 90 days horizon Golden Star Acquisition is expected to generate 74.71 times more return on investment than ClimateRock. However, Golden Star is 74.71 times more volatile than ClimateRock Class A. It trades about 0.11 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.41 per unit of risk. If you would invest 1,149 in Golden Star Acquisition on October 25, 2024 and sell it today you would earn a total of 137.00 from holding Golden Star Acquisition or generate 11.92% 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. ClimateRock Class A
Performance |
| Timeline |
| Golden Star Acquisition |
| ClimateRock Class |
Golden Star and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and ClimateRock
The main advantage of trading using opposite Golden Star and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Golden Star vs. Loud Beverage Group | Golden Star vs. Old Republic International | Golden Star vs. Ambev SA ADR | Golden Star vs. Boston Beer |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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