Correlation Between Golden Ventures and Halcyon Technology
Can any of the company-specific risk be diversified away by investing in both Golden Ventures and Halcyon Technology 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 Ventures and Halcyon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Ventures Leasehold and Halcyon Technology Public, you can compare the effects of market volatilities on Golden Ventures and Halcyon Technology 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 Ventures with a short position of Halcyon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and Halcyon Technology.
Diversification Opportunities for Golden Ventures and Halcyon Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Halcyon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and Halcyon Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcyon Technology Public and Golden Ventures 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 Ventures Leasehold are associated (or correlated) with Halcyon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcyon Technology Public has no effect on the direction of Golden Ventures i.e., Golden Ventures and Halcyon Technology go up and down completely randomly.
Pair Corralation between Golden Ventures and Halcyon Technology
Assuming the 90 days trading horizon Golden Ventures Leasehold is expected to generate 0.49 times more return on investment than Halcyon Technology. However, Golden Ventures Leasehold is 2.02 times less risky than Halcyon Technology. It trades about -0.01 of its potential returns per unit of risk. Halcyon Technology Public is currently generating about -0.02 per unit of risk. If you would invest 752.00 in Golden Ventures Leasehold on October 22, 2024 and sell it today you would lose (87.00) from holding Golden Ventures Leasehold or give up 11.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Golden Ventures Leasehold vs. Halcyon Technology Public
Performance |
| Timeline |
| Golden Ventures Leasehold |
| Halcyon Technology Public |
Golden Ventures and Halcyon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and Halcyon Technology
The main advantage of trading using opposite Golden Ventures and Halcyon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures position performs unexpectedly, Halcyon Technology 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 Halcyon Technology will offset losses from the drop in Halcyon Technology's long position.| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
| Halcyon Technology vs. Hwa Fong Rubber | Halcyon Technology vs. Haad Thip Public | Halcyon Technology vs. Ichitan Group Public | Halcyon Technology vs. Hana Microelectronics Public |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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