Correlation Between Kyung-In Synthetic and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Kyung-In Synthetic 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 Kyung-In Synthetic and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyung In Synthetic Corp and Golden Bridge Investment, you can compare the effects of market volatilities on Kyung-In Synthetic 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 Kyung-In Synthetic with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung-In Synthetic and Golden Bridge.
Diversification Opportunities for Kyung-In Synthetic and Golden Bridge
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kyung-In and Golden is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp 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 Kyung-In Synthetic 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 Kyung In Synthetic Corp 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 Kyung-In Synthetic i.e., Kyung-In Synthetic and Golden Bridge go up and down completely randomly.
Pair Corralation between Kyung-In Synthetic and Golden Bridge
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to generate 1.24 times more return on investment than Golden Bridge. However, Kyung-In Synthetic is 1.24 times more volatile than Golden Bridge Investment. It trades about -0.08 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.21 per unit of risk. If you would invest 345,000 in Kyung In Synthetic Corp on September 12, 2024 and sell it today you would lose (68,500) from holding Kyung In Synthetic Corp or give up 19.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Golden Bridge Investment
Performance |
| Timeline |
| Kyung In Synthetic |
| Golden Bridge Investment |
Kyung-In Synthetic and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung-In Synthetic and Golden Bridge
The main advantage of trading using opposite Kyung-In Synthetic and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung-In Synthetic 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.| Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. SK Hynix | Kyung-In Synthetic vs. POSCO Holdings |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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