Correlation Between Samyang Foods and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Samyang Foods 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 Samyang Foods and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyang Foods Co and Golden Bridge Investment, you can compare the effects of market volatilities on Samyang Foods 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 Samyang Foods with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Golden Bridge.
Diversification Opportunities for Samyang Foods and Golden Bridge
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyang and Golden is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co 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 Samyang Foods 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 Samyang Foods Co 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 Samyang Foods i.e., Samyang Foods and Golden Bridge go up and down completely randomly.
Pair Corralation between Samyang Foods and Golden Bridge
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 2.67 times more return on investment than Golden Bridge. However, Samyang Foods is 2.67 times more volatile than Golden Bridge Investment. It trades about 0.03 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.07 per unit of risk. If you would invest 51,200,000 in Samyang Foods Co on August 31, 2024 and sell it today you would earn a total of 700,000 from holding Samyang Foods Co or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Golden Bridge Investment
Performance |
| Timeline |
| Samyang Foods |
| Golden Bridge Investment |
Samyang Foods and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Golden Bridge
The main advantage of trading using opposite Samyang Foods and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods 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.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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