Correlation Between Dongwoon Anatech and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Dongwoon Anatech 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 Dongwoon Anatech and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwoon Anatech Co and Golden Bridge Investment, you can compare the effects of market volatilities on Dongwoon Anatech 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 Dongwoon Anatech with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoon Anatech and Golden Bridge.
Diversification Opportunities for Dongwoon Anatech and Golden Bridge
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongwoon and Golden is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoon Anatech 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 Dongwoon Anatech 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 Dongwoon Anatech 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 Dongwoon Anatech i.e., Dongwoon Anatech and Golden Bridge go up and down completely randomly.
Pair Corralation between Dongwoon Anatech and Golden Bridge
Assuming the 90 days trading horizon Dongwoon Anatech Co is expected to generate 4.54 times more return on investment than Golden Bridge. However, Dongwoon Anatech is 4.54 times more volatile than Golden Bridge Investment. It trades about 0.02 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.25 per unit of risk. If you would invest 1,959,000 in Dongwoon Anatech Co on November 7, 2024 and sell it today you would earn a total of 7,000 from holding Dongwoon Anatech Co or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoon Anatech Co vs. Golden Bridge Investment
Performance |
| Timeline |
| Dongwoon Anatech |
| Golden Bridge Investment |
Dongwoon Anatech and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoon Anatech and Golden Bridge
The main advantage of trading using opposite Dongwoon Anatech and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoon Anatech 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.| Dongwoon Anatech vs. SK Hynix | Dongwoon Anatech vs. LX Semicon Co | Dongwoon Anatech vs. Tokai Carbon Korea | Dongwoon Anatech vs. People Technology |
| Golden Bridge vs. Korea Electronic Certification | Golden Bridge vs. KG Eco Technology | Golden Bridge vs. Miwon Chemicals Co | Golden Bridge vs. Neungyule Education |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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