Correlation Between Golden Star and Jutal Offshore
Can any of the company-specific risk be diversified away by investing in both Golden Star and Jutal Offshore 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 Jutal Offshore 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 Jutal Offshore Oil, you can compare the effects of market volatilities on Golden Star and Jutal Offshore 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 Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and Jutal Offshore.
Diversification Opportunities for Golden Star and Jutal Offshore
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Jutal is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil 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 Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Golden Star i.e., Golden Star and Jutal Offshore go up and down completely randomly.
Pair Corralation between Golden Star and Jutal Offshore
Assuming the 90 days horizon Golden Star Acquisition is expected to generate 0.55 times more return on investment than Jutal Offshore. However, Golden Star Acquisition is 1.81 times less risky than Jutal Offshore. It trades about -0.04 of its potential returns per unit of risk. Jutal Offshore Oil is currently generating about -0.07 per unit of risk. If you would invest 1,293 in Golden Star Acquisition on September 5, 2024 and sell it today you would lose (144.00) from holding Golden Star Acquisition or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Golden Star Acquisition vs. Jutal Offshore Oil
Performance |
| Timeline |
| Golden Star Acquisition |
| Jutal Offshore Oil |
Golden Star and Jutal Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Star and Jutal Offshore
The main advantage of trading using opposite Golden Star and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore's long position.| Golden Star vs. Jutal Offshore Oil | Golden Star vs. JD Sports Fashion | Golden Star vs. RadNet Inc | Golden Star vs. Akanda Corp |
| Jutal Offshore vs. ChampionX | Jutal Offshore vs. Chewy Inc | Jutal Offshore vs. Arhaus Inc | Jutal Offshore vs. Newpark Resources |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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