Correlation Between Golden Developing and UMAX Group

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

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

Diversification Opportunities for Golden Developing and UMAX Group

0.0

Correlation Coefficient

Golden Developing  UMAX Group

Pay attention - limited upside

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

Pair Corralation between Golden Developing and UMAX Group

If you would invest  0.01  in UMAX Group Corp on May 5, 2025 and sell it today you would earn a total of  0.01  from holding UMAX Group Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Golden Developing Solutions  vs.  UMAX Group Corp

Golden Developing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Golden Developing Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Golden Developing is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

UMAX Group Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UMAX Group Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, UMAX Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Golden Developing and UMAX Group

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

The idea behind Golden Developing Solutions and UMAX Group Corp 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.