Correlation Between Sangsin Energy and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy 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 Sangsin Energy and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Golden Bridge Investment, you can compare the effects of market volatilities on Sangsin Energy 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 Sangsin Energy with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Golden Bridge.
Diversification Opportunities for Sangsin Energy and Golden Bridge
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sangsin and Golden is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display 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 Sangsin Energy 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 Sangsin Energy Display 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 Sangsin Energy i.e., Sangsin Energy and Golden Bridge go up and down completely randomly.
Pair Corralation between Sangsin Energy and Golden Bridge
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Golden Bridge. In addition to that, Sangsin Energy is 2.0 times more volatile than Golden Bridge Investment. It trades about -0.23 of its total potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.1 per unit of volatility. If you would invest 47,300 in Golden Bridge Investment on September 29, 2024 and sell it today you would lose (4,500) from holding Golden Bridge Investment or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Golden Bridge Investment
Performance |
| Timeline |
| Sangsin Energy Display |
| Golden Bridge Investment |
Sangsin Energy and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Golden Bridge
The main advantage of trading using opposite Sangsin Energy and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy 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.| Sangsin Energy vs. PNC Technologies co | Sangsin Energy vs. Jeju Air Co | Sangsin Energy vs. FNSTech Co | Sangsin Energy vs. Grand Korea Leisure |
| Golden Bridge vs. PLAYWITH | Golden Bridge vs. Sangsin Energy Display | Golden Bridge vs. SK Chemicals Co | Golden Bridge vs. Korean Reinsurance 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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