Correlation Between Golden Bridge and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Barunson Entertainment 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 Barunson Entertainment 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 Barunson Entertainment Arts, you can compare the effects of market volatilities on Golden Bridge and Barunson Entertainment 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 Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Barunson Entertainment.
Diversification Opportunities for Golden Bridge and Barunson Entertainment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and Barunson is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Barunson Entertainment Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barunson Entertainment 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 Barunson Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barunson Entertainment has no effect on the direction of Golden Bridge i.e., Golden Bridge and Barunson Entertainment go up and down completely randomly.
Pair Corralation between Golden Bridge and Barunson Entertainment
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Barunson Entertainment. In addition to that, Golden Bridge is 1.04 times more volatile than Barunson Entertainment Arts. It trades about -0.15 of its total potential returns per unit of risk. Barunson Entertainment Arts is currently generating about -0.16 per unit of volatility. If you would invest 44,600 in Barunson Entertainment Arts on November 28, 2024 and sell it today you would lose (1,400) from holding Barunson Entertainment Arts or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Golden Bridge Investment vs. Barunson Entertainment Arts
Performance |
| Timeline |
| Golden Bridge Investment |
| Barunson Entertainment |
Golden Bridge and Barunson Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Barunson Entertainment
The main advantage of trading using opposite Golden Bridge and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Barunson Entertainment 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 Barunson Entertainment will offset losses from the drop in Barunson Entertainment's long position.| Golden Bridge vs. Korean Reinsurance Co | Golden Bridge vs. Jeong Moon Information | Golden Bridge vs. Ssangyong Information Communication | Golden Bridge vs. Hyundai BNG Steel |
| Barunson Entertainment vs. Cots Technology Co | Barunson Entertainment vs. GAMEVIL | Barunson Entertainment vs. DoubleU Games Co | Barunson Entertainment vs. NewFlex Technology Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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