Correlation Between DAEDUCK ELECTRONICS and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both DAEDUCK 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 DAEDUCK 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 DAEDUCK ELECTRONICS CoLtd and Golden Bridge Investment, you can compare the effects of market volatilities on DAEDUCK 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 DAEDUCK ELECTRONICS with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAEDUCK ELECTRONICS and Golden Bridge.
Diversification Opportunities for DAEDUCK ELECTRONICS and Golden Bridge
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAEDUCK and Golden is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK 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 DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS i.e., DAEDUCK ELECTRONICS and Golden Bridge go up and down completely randomly.
Pair Corralation between DAEDUCK ELECTRONICS and Golden Bridge
Assuming the 90 days trading horizon DAEDUCK ELECTRONICS CoLtd is expected to under-perform the Golden Bridge. In addition to that, DAEDUCK ELECTRONICS is 1.09 times more volatile than Golden Bridge Investment. It trades about -0.04 of its total potential returns per unit of risk. Golden Bridge Investment is currently generating about 0.05 per unit of volatility. If you would invest 42,600 in Golden Bridge Investment on October 18, 2024 and sell it today you would earn a total of 400.00 from holding Golden Bridge Investment or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAEDUCK ELECTRONICS CoLtd vs. Golden Bridge Investment
Performance |
| Timeline |
| DAEDUCK ELECTRONICS CoLtd |
| Golden Bridge Investment |
DAEDUCK ELECTRONICS and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAEDUCK ELECTRONICS and Golden Bridge
The main advantage of trading using opposite DAEDUCK ELECTRONICS and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAEDUCK 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.| DAEDUCK ELECTRONICS vs. DONGKUK TED METAL | DAEDUCK ELECTRONICS vs. Daishin Information Communications | DAEDUCK ELECTRONICS vs. Choil Aluminum | DAEDUCK ELECTRONICS vs. NICE Information Service |
| Golden Bridge vs. Chorokbaem Healthcare Co | Golden Bridge vs. DAEDUCK ELECTRONICS CoLtd | Golden Bridge vs. Infinitt Healthcare Co | Golden Bridge vs. Daeduck 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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