Correlation Between GDEV and Golden Matrix

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

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

Diversification Opportunities for GDEV and Golden Matrix

-0.37

Correlation Coefficient

GDEV  Golden Matrix

Very good diversification

The 3 months correlation between GDEV and Golden is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GDEV Inc and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group and GDEV 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 GDEV Inc are associated (or correlated) with Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of GDEV i.e., GDEV and Golden Matrix go up and down completely randomly.

Pair Corralation between GDEV and Golden Matrix

Given the investment horizon of 90 days GDEV Inc is expected to under-perform the Golden Matrix. But the stock apears to be less risky and, when comparing its historical volatility, GDEV Inc is 1.38 times less risky than Golden Matrix. The stock trades about -0.16 of its potential returns per unit of risk. The Golden Matrix Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  257.00  in Golden Matrix Group on September 4, 2024 and sell it today you would lose (24.00) from holding Golden Matrix Group or give up 9.34% of portfolio value over 90 days.

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

GDEV Inc  vs.  Golden Matrix Group

GDEV Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GDEV Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting technical and fundamental indicators, GDEV showed solid returns over the last few months and may actually be approaching a breakup point.

Golden Matrix Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Matrix Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile technical and fundamental indicators, Golden Matrix may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with GDEV and Golden Matrix

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

The idea behind GDEV Inc and Golden Matrix Group 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.