Correlation Between Sangsangin Investment and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Golden Bridge 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 Sangsangin Investment and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Golden Bridge Investment, you can compare the effects of market volatilities on Sangsangin Investment and Golden Bridge 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 Sangsangin Investment with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Golden Bridge.
Diversification Opportunities for Sangsangin Investment and Golden Bridge
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Sangsangin and Golden is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Golden Bridge Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Bridge Investment and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Golden Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Bridge Investment has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Golden Bridge go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Golden Bridge
Assuming the 90 days trading horizon If you would invest 64,900 in Golden Bridge Investment on August 25, 2024 and sell it today you would lose (21,400) from holding Golden Bridge Investment or give up 32.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Golden Bridge Investment
Performance |
| Timeline |
| Sangsangin Investment |
| Golden Bridge Investment |
Sangsangin Investment and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Golden Bridge
The main advantage of trading using opposite Sangsangin Investment and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Golden Bridge 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 Bridge will offset losses from the drop in Golden Bridge's long position.| Sangsangin Investment vs. Korea New Network | Sangsangin Investment vs. Dong A Eltek | Sangsangin Investment vs. Dreamus Company | Sangsangin Investment vs. SK Bioscience Co |
| Golden Bridge vs. Chin Yang Chemical | Golden Bridge vs. LG Electronics | Golden Bridge vs. SungMoon Electronics Co | Golden Bridge vs. Samwha Electronics Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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