Correlation Between Golden Developing and Cgrowth Capital

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

By analyzing existing cross correlation between Golden Developing Solutions and Cgrowth Capital, you can compare the effects of market volatilities on Golden Developing and Cgrowth Capital 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 Golden Developing with a short position of Cgrowth Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Developing and Cgrowth Capital.

Diversification Opportunities for Golden Developing and Cgrowth Capital

-0.31

Correlation Coefficient

Golden Developing  Cgrowth Capital

Very good diversification

The 3 months correlation between Golden and Cgrowth is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Golden Developing Solutions and Cgrowth Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cgrowth Capital and Golden Developing 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 Golden Developing Solutions are associated (or correlated) with Cgrowth Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cgrowth Capital has no effect on the direction of Golden Developing i.e., Golden Developing and Cgrowth Capital go up and down completely randomly.

Pair Corralation between Golden Developing and Cgrowth Capital

Given the investment horizon of 90 days Golden Developing Solutions is expected to under-perform the Cgrowth Capital. But the pink sheet apears to be less risky and, when comparing its historical volatility, Golden Developing Solutions is 3.45 times less risky than Cgrowth Capital. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Cgrowth Capital is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  0.17  in Cgrowth Capital on August 31, 2024 and sell it today you would earn a total of  0.13  from holding Cgrowth Capital or generate 76.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Golden Developing Solutions  vs.  Cgrowth Capital

Golden Developing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Developing Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Cgrowth Capital

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cgrowth Capital are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cgrowth Capital sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Golden Developing and Cgrowth Capital

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

The idea behind Golden Developing Solutions and Cgrowth Capital 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.