Correlation Between Golden Matrix and INTNED

Can any of the company-specific risk be diversified away by investing in both Golden Matrix and INTNED 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 INTNED 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 INTNED 575, you can compare the effects of market volatilities on Golden Matrix and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and INTNED.

Diversification Opportunities for Golden Matrix and INTNED

0.47

Correlation Coefficient

Golden Matrix  INTNED

Very weak diversification

The 3 months correlation between Golden and INTNED is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and INTNED 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 575 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 575 has no effect on the direction of Golden Matrix i.e., Golden Matrix and INTNED go up and down completely randomly.

Pair Corralation between Golden Matrix and INTNED

Given the investment horizon of 90 days Golden Matrix Group is expected to under-perform the INTNED. In addition to that, Golden Matrix is 6.0 times more volatile than INTNED 575. It trades about -0.06 of its total potential returns per unit of risk. INTNED 575 is currently generating about -0.12 per unit of volatility. If you would invest  9,888  in INTNED 575 on September 20, 2024 and sell it today you would lose (363.00) from holding INTNED 575 or give up 3.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	63.49%
Values	Daily Returns

Golden Matrix Group  vs.  INTNED 575

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

INTNED 575

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 575 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Golden Matrix and INTNED

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

The idea behind Golden Matrix Group and INTNED 575 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.