Correlation Between Golden Bridge and Kyeryong Construction
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Kyeryong Construction 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 Kyeryong Construction 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 Kyeryong Construction Industrial, you can compare the effects of market volatilities on Golden Bridge and Kyeryong Construction 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 Kyeryong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Kyeryong Construction.
Diversification Opportunities for Golden Bridge and Kyeryong Construction
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Golden and Kyeryong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Kyeryong Construction Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyeryong Construction 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 Kyeryong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyeryong Construction has no effect on the direction of Golden Bridge i.e., Golden Bridge and Kyeryong Construction go up and down completely randomly.
Pair Corralation between Golden Bridge and Kyeryong Construction
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Kyeryong Construction. In addition to that, Golden Bridge is 1.33 times more volatile than Kyeryong Construction Industrial. It trades about -0.07 of its total potential returns per unit of risk. Kyeryong Construction Industrial is currently generating about -0.06 per unit of volatility. If you would invest 1,327,000 in Kyeryong Construction Industrial on September 1, 2024 and sell it today you would lose (19,000) from holding Kyeryong Construction Industrial or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Kyeryong Construction Industri
Performance |
| Timeline |
| Golden Bridge Investment |
| Kyeryong Construction |
Golden Bridge and Kyeryong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Kyeryong Construction
The main advantage of trading using opposite Golden Bridge and Kyeryong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Kyeryong Construction 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 Kyeryong Construction will offset losses from the drop in Kyeryong Construction's long position.| Golden Bridge vs. Sangsangin Investment Securities | Golden Bridge vs. Solution Advanced Technology | Golden Bridge vs. Samyung Trading Co | Golden Bridge vs. E Investment Development |
| Kyeryong Construction vs. AptaBio Therapeutics | Kyeryong Construction vs. Daewoo SBI SPAC | Kyeryong Construction vs. Dream Security co | Kyeryong Construction 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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