Correlation Between Hanwha InvestmentSecuri and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Samsung Life 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 Hanwha InvestmentSecuri and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha InvestmentSecurities Co and Samsung Life Insurance, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Samsung Life 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 Hanwha InvestmentSecuri with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Samsung Life.
Diversification Opportunities for Hanwha InvestmentSecuri and Samsung Life
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanwha and Samsung is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Samsung Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life Insurance and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecurities Co are associated (or correlated) with Samsung Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Life Insurance has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Samsung Life go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Samsung Life
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to generate 2.31 times more return on investment than Samsung Life. However, Hanwha InvestmentSecuri is 2.31 times more volatile than Samsung Life Insurance. It trades about 0.04 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.07 per unit of risk. If you would invest 500,000 in Hanwha InvestmentSecurities Co on August 31, 2024 and sell it today you would earn a total of 212,000 from holding Hanwha InvestmentSecurities Co or generate 42.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. Samsung Life Insurance
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Samsung Life Insurance |
Hanwha InvestmentSecuri and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Samsung Life
The main advantage of trading using opposite Hanwha InvestmentSecuri and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Samsung Life 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 Samsung Life will offset losses from the drop in Samsung Life's long position.| Hanwha InvestmentSecuri vs. Solution Advanced Technology | Hanwha InvestmentSecuri vs. Busan Industrial Co | Hanwha InvestmentSecuri vs. Busan Ind | Hanwha InvestmentSecuri vs. Mirae Asset Daewoo |
| Samsung Life vs. BNK Financial Group | Samsung Life vs. CJ Seafood Corp | Samsung Life vs. Lotte Non Life Insurance | Samsung Life vs. Hana Financial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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