Correlation Between Shinsegae Information and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information 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 Shinsegae Information and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Golden Bridge Investment, you can compare the effects of market volatilities on Shinsegae Information 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 Shinsegae Information with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Golden Bridge.
Diversification Opportunities for Shinsegae Information and Golden Bridge
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and Golden is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic 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 Shinsegae Information 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 Shinsegae Information Communication 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 Shinsegae Information i.e., Shinsegae Information and Golden Bridge go up and down completely randomly.
Pair Corralation between Shinsegae Information and Golden Bridge
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Golden Bridge. In addition to that, Shinsegae Information is 1.07 times more volatile than Golden Bridge Investment. It trades about -0.22 of its total potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.23 per unit of volatility. If you would invest 47,700 in Golden Bridge Investment on August 29, 2024 and sell it today you would lose (3,600) from holding Golden Bridge Investment or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Golden Bridge Investment
Performance |
| Timeline |
| Shinsegae Information |
| Golden Bridge Investment |
Shinsegae Information and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Golden Bridge
The main advantage of trading using opposite Shinsegae Information and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information 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.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| Golden Bridge vs. LB Investment | Golden Bridge vs. Samyang Foods Co | Golden Bridge vs. Dongwon Metal Co | Golden Bridge vs. Daiyang Metal Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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