Correlation Between DB Insurance and Samsung Life
Can any of the company-specific risk be diversified away by investing in both DB Insurance 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 DB Insurance and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB Insurance Co and Samsung Life Insurance, you can compare the effects of market volatilities on DB Insurance 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 DB Insurance with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Insurance and Samsung Life.
Diversification Opportunities for DB Insurance and Samsung Life
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005830 and Samsung is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DB Insurance 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 DB Insurance 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 DB Insurance 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 DB Insurance i.e., DB Insurance and Samsung Life go up and down completely randomly.
Pair Corralation between DB Insurance and Samsung Life
Assuming the 90 days trading horizon DB Insurance is expected to generate 2.04 times less return on investment than Samsung Life. In addition to that, DB Insurance is 1.1 times more volatile than Samsung Life Insurance. It trades about 0.04 of its total potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.09 per unit of volatility. If you would invest 8,460,000 in Samsung Life Insurance on August 25, 2024 and sell it today you would earn a total of 2,190,000 from holding Samsung Life Insurance or generate 25.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Insurance Co vs. Samsung Life Insurance
Performance |
| Timeline |
| DB Insurance |
| Samsung Life Insurance |
DB Insurance and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Insurance and Samsung Life
The main advantage of trading using opposite DB Insurance and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Insurance 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.| DB Insurance vs. LG Household Healthcare | DB Insurance vs. Aprogen Healthcare Games | DB Insurance vs. Youl Chon Chemical | DB Insurance vs. Hannong Chemicals |
| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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