Correlation Between Golden Bridge and Dongwoon Anatech
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Dongwoon Anatech 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 Dongwoon Anatech 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 Dongwoon Anatech Co, you can compare the effects of market volatilities on Golden Bridge and Dongwoon Anatech 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 Dongwoon Anatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Dongwoon Anatech.
Diversification Opportunities for Golden Bridge and Dongwoon Anatech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Dongwoon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Dongwoon Anatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoon Anatech 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 Dongwoon Anatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoon Anatech has no effect on the direction of Golden Bridge i.e., Golden Bridge and Dongwoon Anatech go up and down completely randomly.
Pair Corralation between Golden Bridge and Dongwoon Anatech
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Dongwoon Anatech. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 2.9 times less risky than Dongwoon Anatech. The stock trades about -0.07 of its potential returns per unit of risk. The Dongwoon Anatech Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 876,191 in Dongwoon Anatech Co on November 1, 2024 and sell it today you would earn a total of 1,163,809 from holding Dongwoon Anatech Co or generate 132.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Golden Bridge Investment vs. Dongwoon Anatech Co
Performance |
| Timeline |
| Golden Bridge Investment |
| Dongwoon Anatech |
Golden Bridge and Dongwoon Anatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Dongwoon Anatech
The main advantage of trading using opposite Golden Bridge and Dongwoon Anatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Dongwoon Anatech 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 Dongwoon Anatech will offset losses from the drop in Dongwoon Anatech's long position.| Golden Bridge vs. Inzi Display CoLtd | Golden Bridge vs. Coloray International Investment | Golden Bridge vs. Ssangyong Information Communication | Golden Bridge vs. Alton Sports CoLtd |
| Dongwoon Anatech vs. Dongbu Insurance Co | Dongwoon Anatech vs. Lotte Non Life Insurance | Dongwoon Anatech vs. KakaoBank Corp | Dongwoon Anatech vs. Sangsangin Investment Securities |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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