Correlation Between Golden Entertainment and HELIOS TECHS

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

By analyzing existing cross correlation between Golden Entertainment and HELIOS TECHS INC, you can compare the effects of market volatilities on Golden Entertainment and HELIOS TECHS 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 Entertainment with a short position of HELIOS TECHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Entertainment and HELIOS TECHS.

Diversification Opportunities for Golden Entertainment and HELIOS TECHS

0.8

Correlation Coefficient

Golden Entertainment  HELIOS TECHS

Very poor diversification

The 3 months correlation between Golden and HELIOS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Golden Entertainment and HELIOS TECHS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HELIOS TECHS INC and Golden Entertainment 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 Entertainment are associated (or correlated) with HELIOS TECHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HELIOS TECHS INC has no effect on the direction of Golden Entertainment i.e., Golden Entertainment and HELIOS TECHS go up and down completely randomly.

Pair Corralation between Golden Entertainment and HELIOS TECHS

Assuming the 90 days horizon Golden Entertainment is expected to generate 0.76 times more return on investment than HELIOS TECHS. However, Golden Entertainment is 1.32 times less risky than HELIOS TECHS. It trades about 0.0 of its potential returns per unit of risk. HELIOS TECHS INC is currently generating about -0.03 per unit of risk. If you would invest  2,733  in Golden Entertainment on April 21, 2025 and sell it today you would lose (253.00) from holding Golden Entertainment or give up 9.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Golden Entertainment  vs.  HELIOS TECHS INC

Golden Entertainment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Entertainment are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Golden Entertainment reported solid returns over the last few months and may actually be approaching a breakup point.

HELIOS TECHS INC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HELIOS TECHS INC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, HELIOS TECHS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Golden Entertainment and HELIOS TECHS

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

The idea behind Golden Entertainment and HELIOS TECHS INC 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.