Correlation Between Ssangyong Information and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information 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 Ssangyong Information and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and Golden Bridge Investment, you can compare the effects of market volatilities on Ssangyong Information 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 Ssangyong Information with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Golden Bridge.
Diversification Opportunities for Ssangyong Information and Golden Bridge
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssangyong and Golden is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic 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 Ssangyong Information 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 Ssangyong Information Communication 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 Ssangyong Information i.e., Ssangyong Information and Golden Bridge go up and down completely randomly.
Pair Corralation between Ssangyong Information and Golden Bridge
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to generate 0.94 times more return on investment than Golden Bridge. However, Ssangyong Information Communication is 1.07 times less risky than Golden Bridge. It trades about -0.01 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.05 per unit of risk. If you would invest 78,900 in Ssangyong Information Communication on September 19, 2024 and sell it today you would lose (13,900) from holding Ssangyong Information Communication or give up 17.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Ssangyong Information Communic vs. Golden Bridge Investment
Performance |
Timeline |
Ssangyong Information |
Golden Bridge Investment |
Ssangyong Information and Golden Bridge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ssangyong Information and Golden Bridge
The main advantage of trading using opposite Ssangyong Information and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information 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.Ssangyong Information vs. Settlebank | Ssangyong Information vs. Solution Advanced Technology | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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