Correlation Between Goldenstone Acquisition and Athena Technology

Can any of the company-specific risk be diversified away by investing in both Goldenstone Acquisition and Athena Technology 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 Athena Technology 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 Athena Technology Acquisition, you can compare the effects of market volatilities on Goldenstone Acquisition and Athena Technology 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 Athena Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldenstone Acquisition and Athena Technology.

Diversification Opportunities for Goldenstone Acquisition and Athena Technology

-0.37

Correlation Coefficient

Goldenstone Acquisition  Athena Technology

Very good diversification

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

Pair Corralation between Goldenstone Acquisition and Athena Technology

Assuming the 90 days horizon Goldenstone Acquisition Limited is expected to under-perform the Athena Technology. In addition to that, Goldenstone Acquisition is 10.49 times more volatile than Athena Technology Acquisition. It trades about -0.01 of its total potential returns per unit of risk. Athena Technology Acquisition is currently generating about 0.03 per unit of volatility. If you would invest  1,144  in Athena Technology Acquisition on August 31, 2024 and sell it today you would earn a total of  37.00  from holding Athena Technology Acquisition or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	22.22%
Values	Daily Returns

Goldenstone Acquisition Limite  vs.  Athena Technology Acquisition

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. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Athena Technology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Athena Technology Acquisition are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Athena Technology is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Goldenstone Acquisition and Athena Technology

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

The idea behind Goldenstone Acquisition Limited and Athena Technology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.