Correlation Between So Young and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both So Young and Golden Matrix 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 So Young and Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and Golden Matrix Group, you can compare the effects of market volatilities on So Young and Golden Matrix 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 So Young with a short position of Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and Golden Matrix.
Diversification Opportunities for So Young and Golden Matrix
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between So Young and Golden is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group and So Young 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 So Young International are associated (or correlated) with Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of So Young i.e., So Young and Golden Matrix go up and down completely randomly.
Pair Corralation between So Young and Golden Matrix
Allowing for the 90-day total investment horizon So Young is expected to generate 1.33 times less return on investment than Golden Matrix. But when comparing it to its historical volatility, So Young International is 1.09 times less risky than Golden Matrix. It trades about 0.03 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Golden Matrix Group on August 27, 2024 and sell it today you would earn a total of 48.00 from holding Golden Matrix Group or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. Golden Matrix Group
Performance |
| Timeline |
| So Young International |
| Golden Matrix Group |
So Young and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and Golden Matrix
The main advantage of trading using opposite So Young and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, Golden Matrix 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 Matrix will offset losses from the drop in Golden Matrix's long position.| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
| Golden Matrix vs. AEye Inc | Golden Matrix vs. Arqit Quantum Warrants | Golden Matrix vs. Xos Equity Warrants |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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