Correlation Between Golden Ventures and Sun Vending
Can any of the company-specific risk be diversified away by investing in both Golden Ventures and Sun Vending 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 Sun Vending 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 Sun Vending Technology, you can compare the effects of market volatilities on Golden Ventures and Sun Vending 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 Sun Vending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and Sun Vending.
Diversification Opportunities for Golden Ventures and Sun Vending
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and Sun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and Sun Vending Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Vending Technology 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 Sun Vending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Vending Technology has no effect on the direction of Golden Ventures i.e., Golden Ventures and Sun Vending go up and down completely randomly.
Pair Corralation between Golden Ventures and Sun Vending
Assuming the 90 days trading horizon Golden Ventures Leasehold is expected to under-perform the Sun Vending. But the stock apears to be less risky and, when comparing its historical volatility, Golden Ventures Leasehold is 1.73 times less risky than Sun Vending. The stock trades about -0.08 of its potential returns per unit of risk. The Sun Vending Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Sun Vending Technology on October 7, 2024 and sell it today you would earn a total of 4.00 from holding Sun Vending Technology or generate 2.65% 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. Sun Vending Technology
Performance |
| Timeline |
| Golden Ventures Leasehold |
| Sun Vending Technology |
Golden Ventures and Sun Vending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and Sun Vending
The main advantage of trading using opposite Golden Ventures and Sun Vending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures position performs unexpectedly, Sun Vending 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 Sun Vending will offset losses from the drop in Sun Vending'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 |
| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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