Correlation Between Allhome Corp and Golden Haven
Can any of the company-specific risk be diversified away by investing in both Allhome Corp and Golden Haven 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 Allhome Corp and Golden Haven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allhome Corp and Golden Haven Memorial, you can compare the effects of market volatilities on Allhome Corp and Golden Haven 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 Allhome Corp with a short position of Golden Haven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allhome Corp and Golden Haven.
Diversification Opportunities for Allhome Corp and Golden Haven
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allhome and Golden is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Allhome Corp and Golden Haven Memorial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Haven Memorial and Allhome Corp 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 Allhome Corp are associated (or correlated) with Golden Haven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Haven Memorial has no effect on the direction of Allhome Corp i.e., Allhome Corp and Golden Haven go up and down completely randomly.
Pair Corralation between Allhome Corp and Golden Haven
Assuming the 90 days trading horizon Allhome Corp is expected to under-perform the Golden Haven. But the stock apears to be less risky and, when comparing its historical volatility, Allhome Corp is 1.05 times less risky than Golden Haven. The stock trades about -0.11 of its potential returns per unit of risk. The Golden Haven Memorial is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 89,000 in Golden Haven Memorial on August 28, 2024 and sell it today you would earn a total of 126,000 from holding Golden Haven Memorial or generate 141.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.79% |
| Values | Daily Returns |
Allhome Corp vs. Golden Haven Memorial
Performance |
| Timeline |
| Allhome Corp |
| Golden Haven Memorial |
Allhome Corp and Golden Haven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allhome Corp and Golden Haven
The main advantage of trading using opposite Allhome Corp and Golden Haven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allhome Corp position performs unexpectedly, Golden Haven 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 Golden Haven will offset losses from the drop in Golden Haven's long position.| Allhome Corp vs. Metropolitan Bank Trust | Allhome Corp vs. Asia United Bank | Allhome Corp vs. BDO Unibank | Allhome Corp vs. Integrated Micro Electronics |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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