Correlation Between Golden Bridge and HJ ShipBuilding
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and HJ ShipBuilding 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 HJ ShipBuilding 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 HJ ShipBuilding Construction, you can compare the effects of market volatilities on Golden Bridge and HJ ShipBuilding 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 HJ ShipBuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and HJ ShipBuilding.
Diversification Opportunities for Golden Bridge and HJ ShipBuilding
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and 097230 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and HJ ShipBuilding Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HJ ShipBuilding Cons 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 HJ ShipBuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HJ ShipBuilding Cons has no effect on the direction of Golden Bridge i.e., Golden Bridge and HJ ShipBuilding go up and down completely randomly.
Pair Corralation between Golden Bridge and HJ ShipBuilding
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the HJ ShipBuilding. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 4.89 times less risky than HJ ShipBuilding. The stock trades about -0.11 of its potential returns per unit of risk. The HJ ShipBuilding Construction is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 225,000 in HJ ShipBuilding Construction on September 3, 2024 and sell it today you would earn a total of 230,500 from holding HJ ShipBuilding Construction or generate 102.44% 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. HJ ShipBuilding Construction
Performance |
| Timeline |
| Golden Bridge Investment |
| HJ ShipBuilding Cons |
Golden Bridge and HJ ShipBuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and HJ ShipBuilding
The main advantage of trading using opposite Golden Bridge and HJ ShipBuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, HJ ShipBuilding 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 HJ ShipBuilding will offset losses from the drop in HJ ShipBuilding's long position.| Golden Bridge vs. Samhwa Paint Industrial | Golden Bridge vs. Samji Electronics Co | Golden Bridge vs. LG Electronics | Golden Bridge vs. Sungwoo Electronics Co |
| HJ ShipBuilding vs. LG Display | HJ ShipBuilding vs. Hyundai Motor | HJ ShipBuilding vs. Hyundai Motor Co | HJ ShipBuilding vs. Hyundai Motor 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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