Correlation Between Golden Matrix and GDEV

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

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

Diversification Opportunities for Golden Matrix and GDEV

0.67

Correlation Coefficient

Golden Matrix  GDEV

Poor diversification

The 3 months correlation between Golden and GDEV is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc and Golden Matrix 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 Golden Matrix Group are associated (or correlated) with GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of Golden Matrix i.e., Golden Matrix and GDEV go up and down completely randomly.

Pair Corralation between Golden Matrix and GDEV

Given the investment horizon of 90 days Golden Matrix is expected to generate 1.01 times less return on investment than GDEV. But when comparing it to its historical volatility, Golden Matrix Group is 1.13 times less risky than GDEV. It trades about 0.04 of its potential returns per unit of risk. GDEV Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,930  in GDEV Inc on December 2, 2024 and sell it today you would earn a total of  28.00  from holding GDEV Inc or generate 1.45% return on investment over 90 days.

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

Golden Matrix Group  vs.  GDEV Inc

Golden Matrix Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Golden Matrix is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

GDEV Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Golden Matrix and GDEV

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

The idea behind Golden Matrix Group and GDEV Inc 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.