Correlation Between Maven Brands and Gold River

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

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

Diversification Opportunities for Maven Brands and Gold River

0.76

Correlation Coefficient

Maven Brands  Gold River

Poor diversification

The 3 months correlation between Maven and Gold is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Maven Brands and Gold River Prods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold River Prods and Maven Brands 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 Maven Brands are associated (or correlated) with Gold River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold River Prods has no effect on the direction of Maven Brands i.e., Maven Brands and Gold River go up and down completely randomly.

Pair Corralation between Maven Brands and Gold River

If you would invest  0.03  in Gold River Prods on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Gold River Prods or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	85.0%
Values	Daily Returns

Maven Brands  vs.  Gold River Prods

Maven Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maven Brands 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 nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Gold River Prods

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gold River Prods are ranked lower than 3 (%) 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.

Pair Trading with Maven Brands and Gold River

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

The idea behind Maven Brands and Gold River Prods 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.