Correlation Between Kuk Young and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Kuk Young 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 Kuk Young and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuk Young GM and Golden Bridge Investment, you can compare the effects of market volatilities on Kuk Young 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 Kuk Young with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuk Young and Golden Bridge.
Diversification Opportunities for Kuk Young and Golden Bridge
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kuk and Golden is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kuk Young GM 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 Kuk Young 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 Kuk Young GM 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 Kuk Young i.e., Kuk Young and Golden Bridge go up and down completely randomly.
Pair Corralation between Kuk Young and Golden Bridge
Assuming the 90 days trading horizon Kuk Young GM is expected to generate 1.95 times more return on investment than Golden Bridge. However, Kuk Young is 1.95 times more volatile than Golden Bridge Investment. It trades about 0.04 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.09 per unit of risk. If you would invest 148,000 in Kuk Young GM on September 12, 2024 and sell it today you would earn a total of 37,100 from holding Kuk Young GM or generate 25.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuk Young GM vs. Golden Bridge Investment
Performance |
| Timeline |
| Kuk Young GM |
| Golden Bridge Investment |
Kuk Young and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuk Young and Golden Bridge
The main advantage of trading using opposite Kuk Young and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuk Young 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.| Kuk Young vs. Golden Bridge Investment | Kuk Young vs. Coloray International Investment | Kuk Young vs. Atinum Investment Co | Kuk Young vs. Korea Information Communications |
| Golden Bridge vs. Samsung Electronics Co | Golden Bridge vs. Samsung Electronics Co | Golden Bridge vs. SK Hynix | Golden Bridge vs. POSCO Holdings |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |