Correlation Between Golden Bridge and Kyung In
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Kyung In 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 Kyung In 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 Kyung In Synthetic Corp, you can compare the effects of market volatilities on Golden Bridge and Kyung In 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 Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Kyung In.
Diversification Opportunities for Golden Bridge and Kyung In
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Kyung is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic 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 Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Golden Bridge i.e., Golden Bridge and Kyung In go up and down completely randomly.
Pair Corralation between Golden Bridge and Kyung In
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Kyung In. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 1.59 times less risky than Kyung In. The stock trades about -0.03 of its potential returns per unit of risk. The Kyung In Synthetic Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 275,000 in Kyung In Synthetic Corp on November 3, 2024 and sell it today you would earn a total of 7,000 from holding Kyung In Synthetic Corp or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Golden Bridge Investment |
| Kyung In Synthetic |
Golden Bridge and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Kyung In
The main advantage of trading using opposite Golden Bridge and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In'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 |
| Kyung In vs. Youngsin Metal Industrial | Kyung In vs. Eagon Industrial Co | Kyung In vs. Choil Aluminum | Kyung In vs. Pyung Hwa Industrial |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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