Correlation Between Hankook Furniture and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Hankook Furniture 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 Hankook Furniture and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankook Furniture Co and Samsung Life Insurance, you can compare the effects of market volatilities on Hankook Furniture 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 Hankook Furniture with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankook Furniture and Samsung Life.
Diversification Opportunities for Hankook Furniture and Samsung Life
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hankook and Samsung is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hankook Furniture 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 Hankook Furniture 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 Hankook Furniture 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 Hankook Furniture i.e., Hankook Furniture and Samsung Life go up and down completely randomly.
Pair Corralation between Hankook Furniture and Samsung Life
Assuming the 90 days trading horizon Hankook Furniture Co is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, Hankook Furniture Co is 1.78 times less risky than Samsung Life. The stock trades about 0.0 of its potential returns per unit of risk. The Samsung Life Insurance is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,559,289 in Samsung Life Insurance on August 31, 2024 and sell it today you would earn a total of 4,150,711 from holding Samsung Life Insurance or generate 63.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankook Furniture Co vs. Samsung Life Insurance
Performance |
| Timeline |
| Hankook Furniture |
| Samsung Life Insurance |
Hankook Furniture and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankook Furniture and Samsung Life
The main advantage of trading using opposite Hankook Furniture and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankook Furniture 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.| Hankook Furniture vs. LG Display | Hankook Furniture vs. Hyundai Motor | Hankook Furniture vs. Hyundai Motor Co | Hankook Furniture vs. Hyundai Motor Co |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |