Correlation Between Goldenstone Acquisition and Coupang LLC

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

Diversification Opportunities for Goldenstone Acquisition and Coupang LLC

0.22

Correlation Coefficient

Goldenstone Acquisition  Coupang LLC

Modest diversification

The 3 months correlation between Goldenstone and Coupang is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Goldenstone Acquisition Limite and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC 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 Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Goldenstone Acquisition i.e., Goldenstone Acquisition and Coupang LLC go up and down completely randomly.

Pair Corralation between Goldenstone Acquisition and Coupang LLC

Assuming the 90 days horizon Goldenstone Acquisition Limited is expected to generate 25.51 times more return on investment than Coupang LLC. However, Goldenstone Acquisition is 25.51 times more volatile than Coupang LLC. It trades about 0.19 of its potential returns per unit of risk. Coupang LLC is currently generating about 0.02 per unit of risk. If you would invest  4.30  in Goldenstone Acquisition Limited on December 31, 2024 and sell it today you would earn a total of  3.70  from holding Goldenstone Acquisition Limited or generate 86.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	75.41%
Values	Daily Returns

Goldenstone Acquisition Limite  vs.  Coupang LLC

Goldenstone Acquisition

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldenstone Acquisition Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Goldenstone Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Coupang LLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coupang LLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Coupang LLC is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Goldenstone Acquisition and Coupang LLC

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

The idea behind Goldenstone Acquisition Limited and Coupang LLC 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.