Correlation Between Golden Bridge and Korea Investment
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Korea Investment 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 Korea Investment 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 Korea Investment Holdings, you can compare the effects of market volatilities on Golden Bridge and Korea Investment 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 Korea Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Korea Investment.
Diversification Opportunities for Golden Bridge and Korea Investment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Korea is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Korea Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Investment Holdings 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 Korea Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Investment Holdings has no effect on the direction of Golden Bridge i.e., Golden Bridge and Korea Investment go up and down completely randomly.
Pair Corralation between Golden Bridge and Korea Investment
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Korea Investment. In addition to that, Golden Bridge is 1.41 times more volatile than Korea Investment Holdings. It trades about -0.06 of its total potential returns per unit of risk. Korea Investment Holdings is currently generating about 0.04 per unit of volatility. If you would invest 4,324,670 in Korea Investment Holdings on August 24, 2024 and sell it today you would earn a total of 1,045,330 from holding Korea Investment Holdings or generate 24.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Korea Investment Holdings
Performance |
| Timeline |
| Golden Bridge Investment |
| Korea Investment Holdings |
Golden Bridge and Korea Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Korea Investment
The main advantage of trading using opposite Golden Bridge and Korea Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Korea Investment 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 Korea Investment will offset losses from the drop in Korea Investment's long position.| Golden Bridge vs. CG Hi Tech | Golden Bridge vs. Korea Computer | Golden Bridge vs. Hankook Furniture Co | Golden Bridge vs. BIT Computer Co |
| Korea Investment vs. AptaBio Therapeutics | Korea Investment vs. Daewoo SBI SPAC | Korea Investment vs. Dream Security co | Korea Investment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |