Correlation Between Samlip General and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Samlip General 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 Samlip General and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Golden Bridge Investment, you can compare the effects of market volatilities on Samlip General 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 Samlip General with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Golden Bridge.
Diversification Opportunities for Samlip General and Golden Bridge
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samlip and Golden is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods 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 Samlip General 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 Samlip General Foods 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 Samlip General i.e., Samlip General and Golden Bridge go up and down completely randomly.
Pair Corralation between Samlip General and Golden Bridge
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the Golden Bridge. In addition to that, Samlip General is 1.34 times more volatile than Golden Bridge Investment. It trades about -0.09 of its total potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.08 per unit of volatility. If you would invest 44,700 in Golden Bridge Investment on September 2, 2024 and sell it today you would lose (1,100) from holding Golden Bridge Investment or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Golden Bridge Investment
Performance |
| Timeline |
| Samlip General Foods |
| Golden Bridge Investment |
Samlip General and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Golden Bridge
The main advantage of trading using opposite Samlip General and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General 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.| Samlip General vs. AptaBio Therapeutics | Samlip General vs. Daewoo SBI SPAC | Samlip General vs. Dream Security co | Samlip General 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.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |