Correlation Between Golden Bridge and CHOROKBAEM PANY
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and CHOROKBAEM PANY 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 CHOROKBAEM PANY 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 CHOROKBAEM PANY Co, you can compare the effects of market volatilities on Golden Bridge and CHOROKBAEM PANY 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 CHOROKBAEM PANY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and CHOROKBAEM PANY.
Diversification Opportunities for Golden Bridge and CHOROKBAEM PANY
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and CHOROKBAEM is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and CHOROKBAEM PANY Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHOROKBAEM PANY 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 CHOROKBAEM PANY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHOROKBAEM PANY has no effect on the direction of Golden Bridge i.e., Golden Bridge and CHOROKBAEM PANY go up and down completely randomly.
Pair Corralation between Golden Bridge and CHOROKBAEM PANY
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the CHOROKBAEM PANY. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 1.69 times less risky than CHOROKBAEM PANY. The stock trades about -0.06 of its potential returns per unit of risk. The CHOROKBAEM PANY Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 51,500 in CHOROKBAEM PANY Co on October 12, 2024 and sell it today you would lose (21,500) from holding CHOROKBAEM PANY Co or give up 41.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.54% |
| Values | Daily Returns |
Golden Bridge Investment vs. CHOROKBAEM PANY Co
Performance |
| Timeline |
| Golden Bridge Investment |
| CHOROKBAEM PANY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Bridge and CHOROKBAEM PANY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and CHOROKBAEM PANY
The main advantage of trading using opposite Golden Bridge and CHOROKBAEM PANY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, CHOROKBAEM PANY 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 CHOROKBAEM PANY will offset losses from the drop in CHOROKBAEM PANY's long position.| Golden Bridge vs. Youngsin Metal Industrial | Golden Bridge vs. DONGKUK TED METAL | Golden Bridge vs. Kukil Metal Co | Golden Bridge vs. Clean Science co |
| CHOROKBAEM PANY vs. ChipsMedia | CHOROKBAEM PANY vs. Pan Entertainment Co | CHOROKBAEM PANY vs. Dongbu Insurance Co | CHOROKBAEM PANY vs. DB Insurance 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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