Correlation Between Golden Star and Arogo Capital

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

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

Diversification Opportunities for Golden Star and Arogo Capital

0.0

Correlation Coefficient

Golden Star  Arogo Capital

Pay attention - limited upside

The 3 months correlation between Golden and Arogo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Acquisition and Arogo Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arogo Capital Acquisition and Golden Star 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 Star Acquisition are associated (or correlated) with Arogo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arogo Capital Acquisition has no effect on the direction of Golden Star i.e., Golden Star and Arogo Capital go up and down completely randomly.

Pair Corralation between Golden Star and Arogo Capital

Assuming the 90 days horizon Golden Star Acquisition is expected to generate 3.17 times more return on investment than Arogo Capital. However, Golden Star is 3.17 times more volatile than Arogo Capital Acquisition. It trades about 0.01 of its potential returns per unit of risk. Arogo Capital Acquisition is currently generating about -0.02 per unit of risk. If you would invest  1,164  in Golden Star Acquisition on October 7, 2024 and sell it today you would lose (4.00) from holding Golden Star Acquisition or give up 0.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	41.27%
Values	Daily Returns

Golden Star Acquisition  vs.  Arogo Capital Acquisition

Golden Star Acquisition

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Star Acquisition are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Golden Star is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Arogo Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Arogo Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Arogo Capital is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Golden Star and Arogo Capital

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

The idea behind Golden Star Acquisition and Arogo Capital Acquisition 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.