Correlation Between Qudian and Golden Star
Can any of the company-specific risk be diversified away by investing in both Qudian 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 Qudian and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qudian Inc and Golden Star Acquisition, you can compare the effects of market volatilities on Qudian 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 Qudian with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qudian and Golden Star.
Diversification Opportunities for Qudian and Golden Star
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qudian and Golden is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Qudian Inc 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 Qudian 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 Qudian Inc 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 Qudian i.e., Qudian and Golden Star go up and down completely randomly.
Pair Corralation between Qudian and Golden Star
Allowing for the 90-day total investment horizon Qudian Inc is expected to under-perform the Golden Star. In addition to that, Qudian is 1.04 times more volatile than Golden Star Acquisition. It trades about -0.07 of its total potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.31 per unit of volatility. If you would invest 1,124 in Golden Star Acquisition on October 24, 2024 and sell it today you would earn a total of 146.00 from holding Golden Star Acquisition or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qudian Inc vs. Golden Star Acquisition
Performance |
| Timeline |
| Qudian Inc |
| Golden Star Acquisition |
Qudian and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qudian and Golden Star
The main advantage of trading using opposite Qudian and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qudian 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.| Qudian vs. Visa Class A | Qudian vs. Mastercard | Qudian vs. MSCI ACWI exAUCONSUMER | Qudian vs. Sycamore Entmt Grp |
| Golden Star vs. Integral Ad Science | Golden Star vs. Aldel Financial II | Golden Star vs. Marchex | Golden Star vs. ZhongAn Online P |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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