Correlation Between Korea Air and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Korea Air 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 Korea Air and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Air Svc and Golden Bridge Investment, you can compare the effects of market volatilities on Korea Air 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 Korea Air with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Air and Golden Bridge.
Diversification Opportunities for Korea Air and Golden Bridge
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Korea and Golden is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Korea Air Svc 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 Korea Air 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 Korea Air Svc 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 Korea Air i.e., Korea Air and Golden Bridge go up and down completely randomly.
Pair Corralation between Korea Air and Golden Bridge
Assuming the 90 days trading horizon Korea Air Svc is expected to generate 1.8 times more return on investment than Golden Bridge. However, Korea Air is 1.8 times more volatile than Golden Bridge Investment. It trades about -0.02 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 5,670,000 in Korea Air Svc on September 1, 2024 and sell it today you would lose (100,000) from holding Korea Air Svc or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Air Svc vs. Golden Bridge Investment
Performance |
| Timeline |
| Korea Air Svc |
| Golden Bridge Investment |
Korea Air and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Air and Golden Bridge
The main advantage of trading using opposite Korea Air and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Air 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.| Korea Air vs. Korea New Network | Korea Air vs. ICD Co | Korea Air vs. DYPNF CoLtd | Korea Air vs. Busan Industrial Co |
| Golden Bridge vs. Sangsangin Investment Securities | Golden Bridge vs. Solution Advanced Technology | Golden Bridge vs. Samyung Trading Co | Golden Bridge vs. E Investment Development |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |