Correlation Between Golden Bridge and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Samyung Trading 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 Bridge and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Bridge Investment and Samyung Trading Co, you can compare the effects of market volatilities on Golden Bridge and Samyung Trading 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 Bridge with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Samyung Trading.
Diversification Opportunities for Golden Bridge and Samyung Trading
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and Samyung is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Golden Bridge 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 Bridge Investment are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Golden Bridge i.e., Golden Bridge and Samyung Trading go up and down completely randomly.
Pair Corralation between Golden Bridge and Samyung Trading
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Samyung Trading. In addition to that, Golden Bridge is 2.26 times more volatile than Samyung Trading Co. It trades about -0.06 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about 0.02 per unit of volatility. If you would invest 1,185,647 in Samyung Trading Co on August 24, 2024 and sell it today you would earn a total of 96,353 from holding Samyung Trading Co or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Samyung Trading Co
Performance |
| Timeline |
| Golden Bridge Investment |
| Samyung Trading |
Golden Bridge and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Samyung Trading
The main advantage of trading using opposite Golden Bridge and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Golden Bridge vs. CG Hi Tech | Golden Bridge vs. Korea Computer | Golden Bridge vs. Hankook Furniture Co | Golden Bridge vs. BIT Computer Co |
| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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