Correlation Between Dongsuh and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Dongsuh 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 Dongsuh and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongsuh and Golden Bridge Investment, you can compare the effects of market volatilities on Dongsuh 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 Dongsuh with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsuh and Golden Bridge.
Diversification Opportunities for Dongsuh and Golden Bridge
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dongsuh and Golden is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongsuh 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 Dongsuh 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 Dongsuh 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 Dongsuh i.e., Dongsuh and Golden Bridge go up and down completely randomly.
Pair Corralation between Dongsuh and Golden Bridge
Assuming the 90 days trading horizon Dongsuh is expected to generate 3.12 times more return on investment than Golden Bridge. However, Dongsuh is 3.12 times more volatile than Golden Bridge Investment. It trades about 0.12 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.1 per unit of risk. If you would invest 2,700,000 in Dongsuh on September 5, 2024 and sell it today you would earn a total of 270,000 from holding Dongsuh or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongsuh vs. Golden Bridge Investment
Performance |
| Timeline |
| Dongsuh |
| Golden Bridge Investment |
Dongsuh and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsuh and Golden Bridge
The main advantage of trading using opposite Dongsuh and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsuh 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.| Dongsuh vs. Golden Bridge Investment | Dongsuh vs. NH Investment Securities | Dongsuh vs. Chorokbaem Healthcare Co | Dongsuh vs. Dongbang Transport Logistics |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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