Correlation Between GOLDEN GUINEA and INTERNATIONAL ENERGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between GOLDEN GUINEA BREWERIES and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on GOLDEN GUINEA and INTERNATIONAL ENERGY 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 GUINEA with a short position of INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDEN GUINEA and INTERNATIONAL ENERGY.
Diversification Opportunities for GOLDEN GUINEA and INTERNATIONAL ENERGY
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOLDEN and INTERNATIONAL is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding GOLDEN GUINEA BREWERIES and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY and GOLDEN GUINEA 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 GUINEA BREWERIES are associated (or correlated) with INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of GOLDEN GUINEA i.e., GOLDEN GUINEA and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between GOLDEN GUINEA and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon GOLDEN GUINEA BREWERIES is expected to generate 0.21 times more return on investment than INTERNATIONAL ENERGY. However, GOLDEN GUINEA BREWERIES is 4.78 times less risky than INTERNATIONAL ENERGY. It trades about 0.08 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.02 per unit of risk. If you would invest 315.00 in GOLDEN GUINEA BREWERIES on September 2, 2024 and sell it today you would earn a total of 55.00 from holding GOLDEN GUINEA BREWERIES or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOLDEN GUINEA BREWERIES vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| GOLDEN GUINEA BREWERIES |
| INTERNATIONAL ENERGY |
GOLDEN GUINEA and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDEN GUINEA and INTERNATIONAL ENERGY
The main advantage of trading using opposite GOLDEN GUINEA and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDEN GUINEA position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.The idea behind GOLDEN GUINEA BREWERIES and INTERNATIONAL ENERGY INSURANCE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |