Correlation Between Pollard Banknote and Golden Sun
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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pollard Banknote Limited vs. Golden Sun Education
Performance |
| Timeline |
| Pollard Banknote |
| Golden Sun Education |
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.| Pollard Banknote vs. Storage Vault Canada | Pollard Banknote vs. Metalero Mining Corp | Pollard Banknote vs. Getty Copper | Pollard Banknote vs. Western Copper and |
| Golden Sun vs. Evolution Gaming Group | Golden Sun vs. Altisource Asset Management | Golden Sun vs. Intelligent Protection Management | Golden Sun vs. GameStop Corp |
Check out your portfolio center.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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