Correlation Between Golden Bridge and Hanwha InvestmentSecuri
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri 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 Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Golden Bridge and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Hanwha InvestmentSecuri.
Diversification Opportunities for Golden Bridge and Hanwha InvestmentSecuri
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and Hanwha is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Golden Bridge i.e., Golden Bridge and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between Golden Bridge and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon Golden Bridge Investment is expected to generate 0.36 times more return on investment than Hanwha InvestmentSecuri. However, Golden Bridge Investment is 2.82 times less risky than Hanwha InvestmentSecuri. It trades about -0.03 of its potential returns per unit of risk. Hanwha InvestmentSecurities Co is currently generating about -0.09 per unit of risk. If you would invest 43,700 in Golden Bridge Investment on November 3, 2024 and sell it today you would lose (800.00) from holding Golden Bridge Investment or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
| Golden Bridge Investment |
| Hanwha InvestmentSecuri |
Golden Bridge and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Hanwha InvestmentSecuri
The main advantage of trading using opposite Golden Bridge and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.| Golden Bridge vs. E Investment Development | Golden Bridge vs. EBEST Investment Securities | Golden Bridge vs. Daol Investment Securities | Golden Bridge vs. SBI Investment KOREA |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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