Correlation Between E Investment and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both E Investment 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 E Investment and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Golden Bridge Investment, you can compare the effects of market volatilities on E Investment 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 E Investment with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Golden Bridge.
Diversification Opportunities for E Investment and Golden Bridge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development 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 E Investment 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 E Investment Development 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 E Investment i.e., E Investment and Golden Bridge go up and down completely randomly.
Pair Corralation between E Investment and Golden Bridge
If you would invest 139,200 in E Investment Development on August 29, 2024 and sell it today you would earn a total of 0.00 from holding E Investment Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Investment Development vs. Golden Bridge Investment
Performance |
| Timeline |
| E Investment Development |
| Golden Bridge Investment |
E Investment and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Golden Bridge
The main advantage of trading using opposite E Investment and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment 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.| E Investment vs. Korea Real Estate | E Investment vs. Korea Ratings Co | E Investment vs. IQuest Co | E Investment vs. Wonbang Tech Co |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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