Correlation Between Golden Bridge and Pharmicell
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Pharmicell 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 Golden Bridge and Pharmicell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Bridge Investment and Pharmicell, you can compare the effects of market volatilities on Golden Bridge and Pharmicell 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 Golden Bridge with a short position of Pharmicell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Pharmicell.
Diversification Opportunities for Golden Bridge and Pharmicell
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Pharmicell is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Pharmicell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharmicell and Golden Bridge 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 Golden Bridge Investment are associated (or correlated) with Pharmicell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharmicell has no effect on the direction of Golden Bridge i.e., Golden Bridge and Pharmicell go up and down completely randomly.
Pair Corralation between Golden Bridge and Pharmicell
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Pharmicell. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 2.5 times less risky than Pharmicell. The stock trades about -0.1 of its potential returns per unit of risk. The Pharmicell is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 516,000 in Pharmicell on October 11, 2024 and sell it today you would earn a total of 339,000 from holding Pharmicell or generate 65.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Golden Bridge Investment vs. Pharmicell
Performance |
Timeline |
Golden Bridge Investment |
Pharmicell |
Golden Bridge and Pharmicell Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golden Bridge and Pharmicell
The main advantage of trading using opposite Golden Bridge and Pharmicell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Pharmicell 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 Pharmicell will offset losses from the drop in Pharmicell's long position.Golden Bridge vs. CG Hi Tech | Golden Bridge vs. Nice Information Telecommunication | Golden Bridge vs. BGF Retail Co | Golden Bridge vs. Wireless Power Amplifier |
Pharmicell vs. Yura Tech Co | Pharmicell vs. Raontech | Pharmicell vs. FNSTech Co | Pharmicell vs. Golden Bridge Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |