Correlation Between Hawks Acquisition and Golden Star

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

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

Diversification Opportunities for Hawks Acquisition and Golden Star

-0.11

Correlation Coefficient

Hawks Acquisition  Golden Star

Good diversification

The 3 months correlation between Hawks and Golden is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hawks Acquisition Corp and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition and Hawks Acquisition 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 Hawks Acquisition Corp are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Hawks Acquisition i.e., Hawks Acquisition and Golden Star go up and down completely randomly.

Pair Corralation between Hawks Acquisition and Golden Star

If you would invest  1,149  in Golden Star Acquisition on October 22, 2024 and sell it today you would earn a total of  135.00  from holding Golden Star Acquisition or generate 11.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Hawks Acquisition Corp  vs.  Golden Star Acquisition

Hawks Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hawks Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, Hawks Acquisition is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Golden Star Acquisition

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Star Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Golden Star may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Hawks Acquisition and Golden Star

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

The idea behind Hawks Acquisition Corp and Golden Star 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.