Correlation Between Golden Bridge and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Aprogen Healthcare 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 Aprogen Healthcare 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 Aprogen Healthcare Games, you can compare the effects of market volatilities on Golden Bridge and Aprogen Healthcare 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 Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Aprogen Healthcare.
Diversification Opportunities for Golden Bridge and Aprogen Healthcare
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and Aprogen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games 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 Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Golden Bridge i.e., Golden Bridge and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Golden Bridge and Aprogen Healthcare
Assuming the 90 days trading horizon Golden Bridge Investment is expected to generate 0.28 times more return on investment than Aprogen Healthcare. However, Golden Bridge Investment is 3.54 times less risky than Aprogen Healthcare. It trades about 0.06 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.37 per unit of risk. If you would invest 42,600 in Golden Bridge Investment on October 15, 2024 and sell it today you would earn a total of 400.00 from holding Golden Bridge Investment or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Golden Bridge Investment |
| Aprogen Healthcare Games |
Golden Bridge and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Aprogen Healthcare
The main advantage of trading using opposite Golden Bridge and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Aprogen Healthcare 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Golden Bridge vs. Jin Air Co | Golden Bridge vs. YG Entertainment | Golden Bridge vs. Korean Air Lines | Golden Bridge vs. Next Entertainment World |
| Aprogen Healthcare vs. EBEST Investment Securities | Aprogen Healthcare vs. Golden Bridge Investment | Aprogen Healthcare vs. Daejung Chemicals Metals | Aprogen Healthcare vs. Taegu Broadcasting |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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