Correlation Between Pollard Banknote and Golden Sun

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Can any of the company-specific risk be diversified away by investing in both Pollard Banknote and Golden Sun 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 Pollard Banknote and Golden Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollard Banknote Limited and Golden Sun Education, you can compare the effects of market volatilities on Pollard Banknote and Golden Sun 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 Pollard Banknote with a short position of Golden Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollard Banknote and Golden Sun.

Diversification Opportunities for Pollard Banknote and Golden Sun

0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Pollard and Golden is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pollard Banknote Limited and Golden Sun Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Sun Education and Pollard Banknote 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 Pollard Banknote Limited are associated (or correlated) with Golden Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Sun Education has no effect on the direction of Pollard Banknote i.e., Pollard Banknote and Golden Sun go up and down completely randomly.

Pair Corralation between Pollard Banknote and Golden Sun

Assuming the 90 days trading horizon Pollard Banknote Limited is expected to generate 0.59 times more return on investment than Golden Sun. However, Pollard Banknote Limited is 1.69 times less risky than Golden Sun. It trades about 0.05 of its potential returns per unit of risk. Golden Sun Education is currently generating about -0.19 per unit of risk. If you would invest  1,861  in Pollard Banknote Limited on August 31, 2025 and sell it today you would earn a total of  114.00  from holding Pollard Banknote Limited or generate 6.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Pollard Banknote Limited  vs.  Golden Sun Education

 Performance 
       Timeline  
Pollard Banknote 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Pollard Banknote Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Pollard Banknote may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Golden Sun Education 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Golden Sun Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pollard Banknote and Golden Sun Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pollard Banknote and Golden Sun

The main advantage of trading using opposite Pollard Banknote and Golden Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollard Banknote position performs unexpectedly, Golden Sun 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 Sun will offset losses from the drop in Golden Sun's long position.
The idea behind Pollard Banknote Limited and Golden Sun Education 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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