Correlation Between SAMG Entertainment and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment 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 SAMG Entertainment and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMG Entertainment Co and Golden Bridge Investment, you can compare the effects of market volatilities on SAMG Entertainment 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 SAMG Entertainment with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and Golden Bridge.
Diversification Opportunities for SAMG Entertainment and Golden Bridge
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAMG and Golden is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment i.e., SAMG Entertainment and Golden Bridge go up and down completely randomly.
Pair Corralation between SAMG Entertainment and Golden Bridge
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to under-perform the Golden Bridge. In addition to that, SAMG Entertainment is 2.06 times more volatile than Golden Bridge Investment. It trades about -0.05 of its total potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.06 per unit of volatility. If you would invest 80,700 in Golden Bridge Investment on September 19, 2024 and sell it today you would lose (38,100) from holding Golden Bridge Investment or give up 47.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMG Entertainment Co vs. Golden Bridge Investment
Performance |
| Timeline |
| SAMG Entertainment |
| Golden Bridge Investment |
SAMG Entertainment and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and Golden Bridge
The main advantage of trading using opposite SAMG Entertainment and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment 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.| SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. LG Energy Solution | SAMG Entertainment vs. SK Hynix |
| Golden Bridge vs. Samsung Electronics Co | Golden Bridge vs. Samsung Electronics Co | Golden Bridge vs. SK Hynix | Golden Bridge vs. POSCO Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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