Correlation Between Golden Matrix and NCR Corp

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

Diversification Opportunities for Golden Matrix and NCR Corp

0.04

Correlation Coefficient

Golden Matrix  NCR Corp

Significant diversification

The 3 months correlation between Golden and NCR is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and NCR Corp Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Corp Pref 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 NCR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Corp Pref has no effect on the direction of Golden Matrix i.e., Golden Matrix and NCR Corp go up and down completely randomly.

Pair Corralation between Golden Matrix and NCR Corp

Given the investment horizon of 90 days Golden Matrix Group is expected to generate 10.62 times more return on investment than NCR Corp. However, Golden Matrix is 10.62 times more volatile than NCR Corp Pref. It trades about 0.02 of its potential returns per unit of risk. NCR Corp Pref is currently generating about 0.02 per unit of risk. If you would invest  240.00  in Golden Matrix Group on October 5, 2024 and sell it today you would lose (37.00) from holding Golden Matrix Group or give up 15.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	52.58%
Values	Daily Returns

Golden Matrix Group  vs.  NCR Corp Pref

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

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 latest fragile performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

NCR Corp Pref

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NCR Corp Pref has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, NCR Corp is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Golden Matrix and NCR Corp

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

The idea behind Golden Matrix Group and NCR Corp Pref 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 Global Correlations module to find global opportunities by holding instruments from different markets.