Correlation Between Samji Electronics and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Samji Electronics 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 Samji Electronics and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samji Electronics Co and Golden Bridge Investment, you can compare the effects of market volatilities on Samji Electronics 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 Samji Electronics with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Golden Bridge.
Diversification Opportunities for Samji Electronics and Golden Bridge
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samji and Golden is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co 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 Samji Electronics 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 Samji Electronics Co 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 Samji Electronics i.e., Samji Electronics and Golden Bridge go up and down completely randomly.
Pair Corralation between Samji Electronics and Golden Bridge
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.92 times more return on investment than Golden Bridge. However, Samji Electronics Co is 1.09 times less risky than Golden Bridge. It trades about 0.01 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.17 per unit of risk. If you would invest 831,051 in Samji Electronics Co on September 3, 2024 and sell it today you would earn a total of 6,949 from holding Samji Electronics Co or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Golden Bridge Investment
Performance |
| Timeline |
| Samji Electronics |
| Golden Bridge Investment |
Samji Electronics and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Golden Bridge
The main advantage of trading using opposite Samji Electronics and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics 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.| Samji Electronics vs. Dongsin Engineering Construction | Samji Electronics vs. Doosan Fuel Cell | Samji Electronics vs. Daishin Balance 1 | Samji Electronics vs. Total Soft Bank |
| Golden Bridge vs. Samhwa Paint Industrial | Golden Bridge vs. Samji Electronics Co | Golden Bridge vs. LG Electronics | Golden Bridge vs. Sungwoo Electronics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |