Correlation Between Golden Star and Swiftmerge Acquisition

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

Diversification Opportunities for Golden Star and Swiftmerge Acquisition

-0.47

Correlation Coefficient

Golden Star  Swiftmerge Acquisition

Very good diversification

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

Pair Corralation between Golden Star and Swiftmerge Acquisition

Assuming the 90 days horizon Golden Star Acquisition is expected to under-perform the Swiftmerge Acquisition. In addition to that, Golden Star is 2.19 times more volatile than Swiftmerge Acquisition Corp. It trades about -0.09 of its total potential returns per unit of risk. Swiftmerge Acquisition Corp is currently generating about -0.08 per unit of volatility. If you would invest  1,130  in Swiftmerge Acquisition Corp on October 26, 2024 and sell it today you would lose (210.00) from holding Swiftmerge Acquisition Corp or give up 18.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	58.33%
Values	Daily Returns

Golden Star Acquisition  vs.  Swiftmerge Acquisition Corp

Golden Star Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Star Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Swiftmerge Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Swiftmerge Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Golden Star and Swiftmerge Acquisition

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

The idea behind Golden Star Acquisition and Swiftmerge Acquisition Corp 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.