Correlation Between WinVest Acquisition and Golden Star
Can any of the company-specific risk be diversified away by investing in both WinVest Acquisition 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 WinVest Acquisition and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinVest Acquisition Corp and Golden Star Acquisition, you can compare the effects of market volatilities on WinVest Acquisition 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 WinVest Acquisition with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinVest Acquisition and Golden Star.
Diversification Opportunities for WinVest Acquisition and Golden Star
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WinVest and Golden is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding WinVest Acquisition Corp 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 WinVest Acquisition 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 WinVest Acquisition 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 Acquisition has no effect on the direction of WinVest Acquisition i.e., WinVest Acquisition and Golden Star go up and down completely randomly.
Pair Corralation between WinVest Acquisition and Golden Star
Given the investment horizon of 90 days WinVest Acquisition Corp is expected to generate 0.07 times more return on investment than Golden Star. However, WinVest Acquisition Corp is 13.81 times less risky than Golden Star. It trades about 0.15 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about -0.27 per unit of risk. If you would invest 1,173 in WinVest Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 13.00 from holding WinVest Acquisition Corp or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
WinVest Acquisition Corp vs. Golden Star Acquisition
Performance |
| Timeline |
| WinVest Acquisition Corp |
| Golden Star Acquisition |
WinVest Acquisition and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinVest Acquisition and Golden Star
The main advantage of trading using opposite WinVest Acquisition and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinVest Acquisition 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.| WinVest Acquisition vs. Visa Class A | WinVest Acquisition vs. Diamond Hill Investment | WinVest Acquisition vs. Distoken Acquisition | WinVest Acquisition vs. Associated Capital Group |
| Golden Star vs. Visa Class A | Golden Star vs. Diamond Hill Investment | Golden Star vs. Distoken Acquisition | Golden Star vs. AllianceBernstein Holding LP |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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