Correlation Between Exploits Discovery and Golden Star
Can any of the company-specific risk be diversified away by investing in both Exploits Discovery 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 Exploits Discovery and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exploits Discovery Corp and Golden Star Resource, you can compare the effects of market volatilities on Exploits Discovery 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 Exploits Discovery with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exploits Discovery and Golden Star.
Diversification Opportunities for Exploits Discovery and Golden Star
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exploits and Golden is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Exploits Discovery Corp and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource and Exploits Discovery 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 Exploits Discovery Corp 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 Resource has no effect on the direction of Exploits Discovery i.e., Exploits Discovery and Golden Star go up and down completely randomly.
Pair Corralation between Exploits Discovery and Golden Star
Assuming the 90 days horizon Exploits Discovery Corp is expected to generate 0.58 times more return on investment than Golden Star. However, Exploits Discovery Corp is 1.72 times less risky than Golden Star. It trades about 0.19 of its potential returns per unit of risk. Golden Star Resource is currently generating about -0.22 per unit of risk. If you would invest 2.70 in Exploits Discovery Corp on November 27, 2024 and sell it today you would earn a total of 0.44 from holding Exploits Discovery Corp or generate 16.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Exploits Discovery Corp vs. Golden Star Resource
Performance |
| Timeline |
| Exploits Discovery Corp |
| Golden Star Resource |
Exploits Discovery and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exploits Discovery and Golden Star
The main advantage of trading using opposite Exploits Discovery and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exploits Discovery 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.| Exploits Discovery vs. Labrador Gold Corp | Exploits Discovery vs. Banyan Gold Corp | Exploits Discovery vs. Mako Mining Corp | Exploits Discovery vs. Puma Exploration |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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