Correlation Between Golden Bridge and SAMRYOONG CoLtd

Can any of the company-specific risk be diversified away by investing in both Golden Bridge and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd 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 SAMRYOONG CoLtd, you can compare the effects of market volatilities on Golden Bridge and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and SAMRYOONG CoLtd.

Diversification Opportunities for Golden Bridge and SAMRYOONG CoLtd

0.0

Correlation Coefficient

Golden Bridge  SAMRYOONG CoLtd

Pay attention - limited upside

The 3 months correlation between Golden and SAMRYOONG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and SAMRYOONG CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMRYOONG CoLtd 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 SAMRYOONG CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMRYOONG CoLtd has no effect on the direction of Golden Bridge i.e., Golden Bridge and SAMRYOONG CoLtd go up and down completely randomly.

Pair Corralation between Golden Bridge and SAMRYOONG CoLtd

If you would invest (100.00) in SAMRYOONG CoLtd on October 26, 2024 and sell it today you would earn a total of  100.00  from holding SAMRYOONG CoLtd or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Golden Bridge Investment  vs.  SAMRYOONG CoLtd

Golden Bridge Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Bridge Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

SAMRYOONG CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAMRYOONG CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SAMRYOONG CoLtd is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Golden Bridge and SAMRYOONG CoLtd

The main advantage of trading using opposite Golden Bridge and SAMRYOONG CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, SAMRYOONG CoLtd 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 SAMRYOONG CoLtd will offset losses from the drop in SAMRYOONG CoLtd's long position.

The idea behind Golden Bridge Investment and SAMRYOONG CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.