Correlation Between Samick Musical and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Golden Bridge 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 Samick Musical and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samick Musical Instruments and Golden Bridge Investment, you can compare the effects of market volatilities on Samick Musical and Golden Bridge 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 Samick Musical with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Golden Bridge.
Diversification Opportunities for Samick Musical and Golden Bridge
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samick and Golden is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Golden Bridge Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Bridge Investment and Samick Musical 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 Samick Musical Instruments are associated (or correlated) with Golden Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Bridge Investment has no effect on the direction of Samick Musical i.e., Samick Musical and Golden Bridge go up and down completely randomly.
Pair Corralation between Samick Musical and Golden Bridge
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.59 times more return on investment than Golden Bridge. However, Samick Musical Instruments is 1.71 times less risky than Golden Bridge. It trades about -0.01 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.08 per unit of risk. If you would invest 117,378 in Samick Musical Instruments on September 2, 2024 and sell it today you would lose (6,878) from holding Samick Musical Instruments or give up 5.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Golden Bridge Investment
Performance |
| Timeline |
| Samick Musical Instr |
| Golden Bridge Investment |
Samick Musical and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Golden Bridge
The main advantage of trading using opposite Samick Musical and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Golden Bridge 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 Golden Bridge will offset losses from the drop in Golden Bridge's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| Golden Bridge vs. AptaBio Therapeutics | Golden Bridge vs. Daewoo SBI SPAC | Golden Bridge vs. Dream Security co | Golden Bridge 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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