Correlation Between Golden Bridge and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Jb Financial 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 Jb Financial 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 Jb Financial, you can compare the effects of market volatilities on Golden Bridge and Jb Financial 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 Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Jb Financial.
Diversification Opportunities for Golden Bridge and Jb Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and 175330 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial 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 Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Golden Bridge i.e., Golden Bridge and Jb Financial go up and down completely randomly.
Pair Corralation between Golden Bridge and Jb Financial
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Jb Financial. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 2.61 times less risky than Jb Financial. The stock trades about -0.14 of its potential returns per unit of risk. The Jb Financial is currently generating about 0.7 of returns per unit of risk over similar time horizon. If you would invest 1,610,000 in Jb Financial on November 6, 2024 and sell it today you would earn a total of 367,000 from holding Jb Financial or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Jb Financial
Performance |
| Timeline |
| Golden Bridge Investment |
| Jb Financial |
Golden Bridge and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Jb Financial
The main advantage of trading using opposite Golden Bridge and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| Golden Bridge vs. AptaBio Therapeutics | Golden Bridge vs. Daewoo SBI SPAC | Golden Bridge vs. Dream Security co | Golden Bridge vs. Microfriend |
| Jb Financial vs. Miwon Chemicals Co | Jb Financial vs. Keyang Electric Machinery | Jb Financial vs. Kukdong Oil Chemicals | Jb Financial vs. Korea Air Svc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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