Correlation Between Golden Star and DMAQ Old
Can any of the company-specific risk be diversified away by investing in both Golden Star and DMAQ Old 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 DMAQ Old 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 DMAQ Old, you can compare the effects of market volatilities on Golden Star and DMAQ Old 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 DMAQ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and DMAQ Old.
Diversification Opportunities for Golden Star and DMAQ Old
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and DMAQ is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and DMAQ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DMAQ Old 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 DMAQ Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DMAQ Old has no effect on the direction of Golden Star i.e., Golden Star and DMAQ Old go up and down completely randomly.
Pair Corralation between Golden Star and DMAQ Old
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 | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Golden Star Acquisition vs. DMAQ Old
Performance |
| Timeline |
| Golden Star Acquisition |
| DMAQ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Star and DMAQ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and DMAQ Old
The main advantage of trading using opposite Golden Star and DMAQ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, DMAQ Old 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 DMAQ Old will offset losses from the drop in DMAQ Old'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 |
| DMAQ Old vs. AlphaVest Acquisition Corp | DMAQ Old vs. ClimateRock Class A | DMAQ Old vs. Manaris Corp | DMAQ Old vs. Alpha One |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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