Correlation Between Maple Leaf and Golden Developing
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Golden Developing 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 Maple Leaf and Golden Developing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Green and Golden Developing Solutions, you can compare the effects of market volatilities on Maple Leaf and Golden Developing 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 Maple Leaf with a short position of Golden Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Golden Developing.
Diversification Opportunities for Maple Leaf and Golden Developing
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maple and Golden is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Green and Golden Developing Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Developing and Maple Leaf 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 Maple Leaf Green are associated (or correlated) with Golden Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Developing has no effect on the direction of Maple Leaf i.e., Maple Leaf and Golden Developing go up and down completely randomly.
Pair Corralation between Maple Leaf and Golden Developing
If you would invest 3.00 in Maple Leaf Green on August 25, 2024 and sell it today you would lose (0.03) from holding Maple Leaf Green or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Maple Leaf Green vs. Golden Developing Solutions
Performance |
| Timeline |
| Maple Leaf Green |
| Golden Developing |
Maple Leaf and Golden Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Golden Developing
The main advantage of trading using opposite Maple Leaf and Golden Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Golden Developing 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 Developing will offset losses from the drop in Golden Developing's long position.| Maple Leaf vs. Rezolute | Maple Leaf vs. Tempest Therapeutics | Maple Leaf vs. Forte Biosciences | Maple Leaf vs. Dyadic International |
| Golden Developing vs. Cann American Corp | Golden Developing vs. GelStat Corp | Golden Developing vs. Green Cures Botanical | Golden Developing vs. Rimrock Gold Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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