Correlation Between Elliott Opportunity and Golden Star

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

By analyzing existing cross correlation between Elliott Opportunity II and Golden Star Acquisition, you can compare the effects of market volatilities on Elliott Opportunity 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 Elliott Opportunity with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliott Opportunity and Golden Star.

Diversification Opportunities for Elliott Opportunity and Golden Star

-0.08

Correlation Coefficient

Elliott Opportunity  Golden Star

Good diversification

The 3 months correlation between Elliott and Golden is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Elliott Opportunity II 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 Elliott Opportunity 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 Elliott Opportunity II 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 Elliott Opportunity i.e., Elliott Opportunity and Golden Star go up and down completely randomly.

Pair Corralation between Elliott Opportunity and Golden Star

If you would invest  1,149  in Golden Star Acquisition on October 22, 2024 and sell it today you would earn a total of  135.00  from holding Golden Star Acquisition or generate 11.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Elliott Opportunity II  vs.  Golden Star Acquisition

Elliott Opportunity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elliott Opportunity II has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Elliott Opportunity is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Golden Star Acquisition

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Star Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Golden Star may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Elliott Opportunity and Golden Star

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

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.