Correlation Between Concord Acquisition and Golden Star

Can any of the company-specific risk be diversified away by investing in both Concord 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 Concord 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 Concord Acquisition Corp and Golden Star Acquisition, you can compare the effects of market volatilities on Concord 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 Concord Acquisition with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and Golden Star.

Diversification Opportunities for Concord Acquisition and Golden Star

0.0

Correlation Coefficient

Concord Acquisition  Golden Star

Pay attention - limited upside

The 3 months correlation between Concord and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Concord 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 Concord 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 Concord 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 Concord Acquisition i.e., Concord Acquisition and Golden Star go up and down completely randomly.

Pair Corralation between Concord Acquisition and Golden Star

Given the investment horizon of 90 days Concord Acquisition Corp is expected to generate 167.64 times more return on investment than Golden Star. However, Concord Acquisition is 167.64 times more volatile than Golden Star Acquisition. It trades about 0.22 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.01 per unit of risk. If you would invest  1,055  in Concord Acquisition Corp on October 7, 2024 and sell it today you would lose (1,055) from holding Concord Acquisition Corp or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	23.81%
Values	Daily Returns

Concord Acquisition Corp  vs.  Golden Star Acquisition

Concord Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concord Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Concord Acquisition is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Golden Star Acquisition

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Star Acquisition are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Golden Star 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 Concord Acquisition and Golden Star

The main advantage of trading using opposite Concord Acquisition and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord 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.

The idea behind Concord Acquisition Corp and Golden Star Acquisition 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.