Correlation Between Gold River and Maven Brands

Can any of the company-specific risk be diversified away by investing in both Gold River and Maven Brands 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 Gold River and Maven Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gold River Prods and Maven Brands, you can compare the effects of market volatilities on Gold River and Maven Brands 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 Gold River with a short position of Maven Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold River and Maven Brands.

Diversification Opportunities for Gold River and Maven Brands

0.0

Correlation Coefficient

Gold River  Maven Brands

Pay attention - limited upside

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

Pair Corralation between Gold River and Maven Brands

If you would invest  0.03  in Gold River Prods on December 20, 2024 and sell it today you would lose (0.02) from holding Gold River Prods or give up 66.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Gold River Prods  vs.  Maven Brands

Gold River Prods

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gold River Prods are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Gold River unveiled solid returns over the last few months and may actually be approaching a breakup point.

Maven Brands

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Gold River and Maven Brands

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

The idea behind Gold River Prods and Maven Brands 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.