Correlation Between Golden Bridge and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and KIWI Media 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 KIWI Media 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 KIWI Media Group, you can compare the effects of market volatilities on Golden Bridge and KIWI Media 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 KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and KIWI Media.
Diversification Opportunities for Golden Bridge and KIWI Media
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and KIWI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group 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 KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Golden Bridge i.e., Golden Bridge and KIWI Media go up and down completely randomly.
Pair Corralation between Golden Bridge and KIWI Media
Assuming the 90 days trading horizon Golden Bridge Investment is expected to generate 0.09 times more return on investment than KIWI Media. However, Golden Bridge Investment is 11.02 times less risky than KIWI Media. It trades about -0.24 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.28 per unit of risk. If you would invest 43,600 in Golden Bridge Investment on November 7, 2024 and sell it today you would lose (1,300) from holding Golden Bridge Investment or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Golden Bridge Investment vs. KIWI Media Group
Performance |
| Timeline |
| Golden Bridge Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KIWI Media Group |
Golden Bridge and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and KIWI Media
The main advantage of trading using opposite Golden Bridge and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Golden Bridge vs. Korea Electronic Certification | Golden Bridge vs. KG Eco Technology | Golden Bridge vs. Miwon Chemicals Co | Golden Bridge vs. Neungyule Education |
| KIWI Media vs. INFINITT Healthcare Co | KIWI Media vs. UJU Electronics Co | KIWI Media vs. Hanwha Chemical Corp | KIWI Media vs. Dongbang Transport Logistics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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