Correlation Between Golden Ridge and Electra Battery

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

By analyzing existing cross correlation between Golden Ridge Resources and Electra Battery Materials, you can compare the effects of market volatilities on Golden Ridge and Electra Battery 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 Ridge with a short position of Electra Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ridge and Electra Battery.

Diversification Opportunities for Golden Ridge and Electra Battery

0.0

Correlation Coefficient

Golden Ridge  Electra Battery

Pay attention - limited upside

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

Pair Corralation between Golden Ridge and Electra Battery

If you would invest  8.00  in Golden Ridge Resources on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Golden Ridge Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Golden Ridge Resources  vs.  Electra Battery Materials

Golden Ridge Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Ridge Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Golden Ridge is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Electra Battery Materials

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Electra Battery Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's fundamental drivers remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Golden Ridge and Electra Battery

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

The idea behind Golden Ridge Resources and Electra Battery Materials 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.