Correlation Between Vuzix Corp and Golden Agri-Resources
Can any of the company-specific risk be diversified away by investing in both Vuzix Corp and Golden Agri-Resources 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 Vuzix Corp and Golden Agri-Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vuzix Corp Cmn and Golden Agri Resources, you can compare the effects of market volatilities on Vuzix Corp and Golden Agri-Resources 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 Vuzix Corp with a short position of Golden Agri-Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vuzix Corp and Golden Agri-Resources.
Diversification Opportunities for Vuzix Corp and Golden Agri-Resources
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vuzix and Golden is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and Golden Agri Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Agri Resources and Vuzix Corp 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 Vuzix Corp Cmn are associated (or correlated) with Golden Agri-Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Agri Resources has no effect on the direction of Vuzix Corp i.e., Vuzix Corp and Golden Agri-Resources go up and down completely randomly.
Pair Corralation between Vuzix Corp and Golden Agri-Resources
Given the investment horizon of 90 days Vuzix Corp Cmn is expected to under-perform the Golden Agri-Resources. In addition to that, Vuzix Corp is 1.52 times more volatile than Golden Agri Resources. It trades about -0.08 of its total potential returns per unit of risk. Golden Agri Resources is currently generating about 0.24 per unit of volatility. If you would invest 18.00 in Golden Agri Resources on November 5, 2024 and sell it today you would earn a total of 5.00 from holding Golden Agri Resources or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Vuzix Corp Cmn vs. Golden Agri Resources
Performance |
| Timeline |
| Vuzix Corp Cmn |
| Golden Agri Resources |
Vuzix Corp and Golden Agri-Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vuzix Corp and Golden Agri-Resources
The main advantage of trading using opposite Vuzix Corp and Golden Agri-Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vuzix Corp position performs unexpectedly, Golden Agri-Resources 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 Agri-Resources will offset losses from the drop in Golden Agri-Resources' long position.| Vuzix Corp vs. LG Display Co | Vuzix Corp vs. Universal Electronics | Vuzix Corp vs. VOXX International | Vuzix Corp vs. Sonos Inc |
| Golden Agri-Resources vs. Wilmar International | Golden Agri-Resources vs. SLC Agricola SA | Golden Agri-Resources vs. Brasilagro Adr | Golden Agri-Resources vs. Alico Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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