Correlation Between KyungIn Electronics and Samsung Life
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics 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 KyungIn Electronics and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KyungIn Electronics Co and Samsung Life Insurance, you can compare the effects of market volatilities on KyungIn Electronics 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 KyungIn Electronics with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Samsung Life.
Diversification Opportunities for KyungIn Electronics and Samsung Life
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KyungIn and Samsung is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics 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 KyungIn Electronics 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 KyungIn Electronics 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 KyungIn Electronics i.e., KyungIn Electronics and Samsung Life go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Samsung Life
Assuming the 90 days trading horizon KyungIn Electronics is expected to generate 1.32 times less return on investment than Samsung Life. But when comparing it to its historical volatility, KyungIn Electronics Co is 2.53 times less risky than Samsung Life. It trades about 0.13 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,250,000 in Samsung Life Insurance on August 28, 2024 and sell it today you would earn a total of 350,000 from holding Samsung Life Insurance or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Samsung Life Insurance
Performance |
| Timeline |
| KyungIn Electronics |
| Samsung Life Insurance |
KyungIn Electronics and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Samsung Life
The main advantage of trading using opposite KyungIn Electronics and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics 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.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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