Correlation Between Goldenstone Acquisition and Assurant

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

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

Diversification Opportunities for Goldenstone Acquisition and Assurant

-0.19

Correlation Coefficient

Goldenstone Acquisition  Assurant

Good diversification

The 3 months correlation between Goldenstone and Assurant is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Goldenstone Acquisition Limite and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Goldenstone 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 Goldenstone Acquisition Limited are associated (or correlated) with Assurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assurant has no effect on the direction of Goldenstone Acquisition i.e., Goldenstone Acquisition and Assurant go up and down completely randomly.

Pair Corralation between Goldenstone Acquisition and Assurant

Assuming the 90 days horizon Goldenstone Acquisition Limited is expected to generate 125.38 times more return on investment than Assurant. However, Goldenstone Acquisition is 125.38 times more volatile than Assurant. It trades about 0.18 of its potential returns per unit of risk. Assurant is currently generating about 0.02 per unit of risk. If you would invest  9.00  in Goldenstone Acquisition Limited on October 3, 2024 and sell it today you would earn a total of  7.00  from holding Goldenstone Acquisition Limited or generate 77.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	32.73%
Values	Daily Returns

Goldenstone Acquisition Limite  vs.  Assurant

Goldenstone Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldenstone Acquisition Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Assurant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Assurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Goldenstone Acquisition and Assurant

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

The idea behind Goldenstone Acquisition Limited and Assurant 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.