Correlation Between Celebrus Technologies and Golden Metal

Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies and Golden Metal 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 Celebrus Technologies and Golden Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celebrus Technologies plc and Golden Metal Resources, you can compare the effects of market volatilities on Celebrus Technologies and Golden Metal 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 Celebrus Technologies with a short position of Golden Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Golden Metal.

Diversification Opportunities for Celebrus Technologies and Golden Metal

0.1

Correlation Coefficient

Celebrus Technologies  Golden Metal

Average diversification

The 3 months correlation between Celebrus and Golden is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc and Golden Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Metal Resources and Celebrus Technologies 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 Celebrus Technologies plc are associated (or correlated) with Golden Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Metal Resources has no effect on the direction of Celebrus Technologies i.e., Celebrus Technologies and Golden Metal go up and down completely randomly.

Pair Corralation between Celebrus Technologies and Golden Metal

Assuming the 90 days trading horizon Celebrus Technologies plc is expected to generate 0.53 times more return on investment than Golden Metal. However, Celebrus Technologies plc is 1.89 times less risky than Golden Metal. It trades about 0.05 of its potential returns per unit of risk. Golden Metal Resources is currently generating about -0.02 per unit of risk. If you would invest  28,500  in Celebrus Technologies plc on September 3, 2024 and sell it today you would earn a total of  1,750  from holding Celebrus Technologies plc or generate 6.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Celebrus Technologies plc  vs.  Golden Metal Resources

Celebrus Technologies plc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Celebrus Technologies plc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Celebrus Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Golden Metal Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Metal Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Golden Metal is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Celebrus Technologies and Golden Metal

The main advantage of trading using opposite Celebrus Technologies and Golden Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies position performs unexpectedly, Golden Metal 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 Metal will offset losses from the drop in Golden Metal's long position.

The idea behind Celebrus Technologies plc and Golden Metal Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.