Correlation Between Golden Bridge and Samyoung M
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Samyoung M 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 Samyoung M 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 Samyoung M Tek Co, you can compare the effects of market volatilities on Golden Bridge and Samyoung M 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 Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Samyoung M.
Diversification Opportunities for Golden Bridge and Samyoung M
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and Samyoung is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek 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 Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of Golden Bridge i.e., Golden Bridge and Samyoung M go up and down completely randomly.
Pair Corralation between Golden Bridge and Samyoung M
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Samyoung M. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 1.61 times less risky than Samyoung M. The stock trades about -0.16 of its potential returns per unit of risk. The Samyoung M Tek Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 413,500 in Samyoung M Tek Co on September 14, 2024 and sell it today you would lose (2,500) from holding Samyoung M Tek Co or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
Golden Bridge Investment vs. Samyoung M Tek Co
Performance |
| Timeline |
| Golden Bridge Investment |
| Samyoung M Tek |
Golden Bridge and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Samyoung M
The main advantage of trading using opposite Golden Bridge and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.| Golden Bridge vs. Samsung Electronics Co | Golden Bridge vs. Samsung Electronics Co | Golden Bridge vs. SK Hynix | Golden Bridge vs. POSCO Holdings |
| Samyoung M vs. Golden Bridge Investment | Samyoung M vs. LB Investment | Samyoung M vs. Stic Investments | Samyoung M vs. Jin Air 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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