Correlation Between Golden Bridge and Kortek
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Kortek 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 Kortek 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 Kortek, you can compare the effects of market volatilities on Golden Bridge and Kortek 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 Kortek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Kortek.
Diversification Opportunities for Golden Bridge and Kortek
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Golden and Kortek is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Kortek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kortek 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 Kortek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kortek has no effect on the direction of Golden Bridge i.e., Golden Bridge and Kortek go up and down completely randomly.
Pair Corralation between Golden Bridge and Kortek
Assuming the 90 days trading horizon Golden Bridge is expected to generate 2.06 times less return on investment than Kortek. In addition to that, Golden Bridge is 1.31 times more volatile than Kortek. It trades about 0.05 of its total potential returns per unit of risk. Kortek is currently generating about 0.12 per unit of volatility. If you would invest 794,975 in Kortek on October 25, 2024 and sell it today you would earn a total of 13,025 from holding Kortek or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Kortek
Performance |
| Timeline |
| Golden Bridge Investment |
| Kortek |
Golden Bridge and Kortek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Kortek
The main advantage of trading using opposite Golden Bridge and Kortek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Kortek 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 Kortek will offset losses from the drop in Kortek's long position.| Golden Bridge vs. KB Financial Group | Golden Bridge vs. Shinhan Financial Group | Golden Bridge vs. Hana Financial | Golden Bridge vs. Woori Financial Group |
| Kortek vs. Sangsin Energy Display | Kortek vs. Samsung Electronics Co | Kortek vs. Automobile Pc | Kortek vs. Alton Sports CoLtd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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