Correlation Between Golden Star and FIAC Old
Can any of the company-specific risk be diversified away by investing in both Golden Star and FIAC 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 FIAC 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 FIAC Old, you can compare the effects of market volatilities on Golden Star and FIAC 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 FIAC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and FIAC Old.
Diversification Opportunities for Golden Star and FIAC Old
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and FIAC is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and FIAC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIAC 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 FIAC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIAC Old has no effect on the direction of Golden Star i.e., Golden Star and FIAC Old go up and down completely randomly.
Pair Corralation between Golden Star and FIAC Old
If you would invest 106.00 in FIAC Old on November 3, 2024 and sell it today you would earn a total of 0.00 from holding FIAC Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Golden Star Acquisition vs. FIAC Old
Performance |
| Timeline |
| Golden Star Acquisition |
| FIAC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Golden Star and FIAC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and FIAC Old
The main advantage of trading using opposite Golden Star and FIAC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, FIAC 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 FIAC Old will offset losses from the drop in FIAC Old's long position.| Golden Star vs. Genfit | Golden Star vs. Tarsus Pharmaceuticals | Golden Star vs. 51Talk Online Education | Golden Star vs. Magnite |
| FIAC Old vs. ClimateRock Class A | FIAC Old vs. AlphaVest Acquisition Corp | FIAC Old vs. Golden Star Acquisition | FIAC Old vs. Four Leaf Acquisition |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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