Correlation Between Golden Matrix and Atari SA

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

Diversification Opportunities for Golden Matrix and Atari SA

0.13

Correlation Coefficient

Golden Matrix  Atari SA

Average diversification

The 3 months correlation between Golden and Atari is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and Atari SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atari SA 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 Atari SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atari SA has no effect on the direction of Golden Matrix i.e., Golden Matrix and Atari SA go up and down completely randomly.

Pair Corralation between Golden Matrix and Atari SA

Given the investment horizon of 90 days Golden Matrix Group is expected to under-perform the Atari SA. But the stock apears to be less risky and, when comparing its historical volatility, Golden Matrix Group is 1.58 times less risky than Atari SA. The stock trades about -0.02 of its potential returns per unit of risk. The Atari SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Atari SA on September 12, 2024 and sell it today you would lose (2.00) from holding Atari SA or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Golden Matrix Group  vs.  Atari SA

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 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.

Atari SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atari SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Atari SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Golden Matrix and Atari SA

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

The idea behind Golden Matrix Group and Atari SA 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.