Correlation Between Ingredion Incorporated and Golden Star
Can any of the company-specific risk be diversified away by investing in both Ingredion Incorporated and Golden Star 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 Ingredion Incorporated and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingredion Incorporated and Golden Star Acquisition, you can compare the effects of market volatilities on Ingredion Incorporated and Golden Star 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 Ingredion Incorporated with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingredion Incorporated and Golden Star.
Diversification Opportunities for Ingredion Incorporated and Golden Star
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingredion and Golden is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ingredion Incorporated and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition and Ingredion Incorporated 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 Ingredion Incorporated are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Ingredion Incorporated i.e., Ingredion Incorporated and Golden Star go up and down completely randomly.
Pair Corralation between Ingredion Incorporated and Golden Star
Given the investment horizon of 90 days Ingredion Incorporated is expected to generate 0.24 times more return on investment than Golden Star. However, Ingredion Incorporated is 4.22 times less risky than Golden Star. It trades about 0.07 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about -0.03 per unit of risk. If you would invest 10,793 in Ingredion Incorporated on November 3, 2024 and sell it today you would earn a total of 2,851 from holding Ingredion Incorporated or generate 26.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Ingredion Incorporated vs. Golden Star Acquisition
Performance |
| Timeline |
| Ingredion Incorporated |
| Golden Star Acquisition |
Ingredion Incorporated and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingredion Incorporated and Golden Star
The main advantage of trading using opposite Ingredion Incorporated and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingredion Incorporated position performs unexpectedly, Golden Star 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 Star will offset losses from the drop in Golden Star's long position.| Ingredion Incorporated vs. Lancaster Colony | Ingredion Incorporated vs. Treehouse Foods | Ingredion Incorporated vs. John B Sanfilippo | Ingredion Incorporated vs. Seneca Foods Corp |
| Golden Star vs. Genfit | Golden Star vs. Tarsus Pharmaceuticals | Golden Star vs. 51Talk Online Education | Golden Star vs. Magnite |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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