Correlation Between Golden Ventures and Sena Development
Can any of the company-specific risk be diversified away by investing in both Golden Ventures and Sena Development 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 Sena Development 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 Sena Development Public, you can compare the effects of market volatilities on Golden Ventures and Sena Development 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 Sena Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and Sena Development.
Diversification Opportunities for Golden Ventures and Sena Development
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Sena is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and Sena Development Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sena Development 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 Sena Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sena Development Public has no effect on the direction of Golden Ventures i.e., Golden Ventures and Sena Development go up and down completely randomly.
Pair Corralation between Golden Ventures and Sena Development
Assuming the 90 days trading horizon Golden Ventures Leasehold is expected to generate 1.57 times more return on investment than Sena Development. However, Golden Ventures is 1.57 times more volatile than Sena Development Public. It trades about 0.13 of its potential returns per unit of risk. Sena Development Public is currently generating about 0.0 per unit of risk. If you would invest 640.00 in Golden Ventures Leasehold on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Golden Ventures Leasehold or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Ventures Leasehold vs. Sena Development Public
Performance |
| Timeline |
| Golden Ventures Leasehold |
| Sena Development Public |
Golden Ventures and Sena Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and Sena Development
The main advantage of trading using opposite Golden Ventures and Sena Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures position performs unexpectedly, Sena Development 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 Sena Development will offset losses from the drop in Sena Development's long position.| Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. LH Shopping Centers | Golden Ventures vs. Quality Houses Property |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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