Correlation Between CJ Seafood and Samsung Life
Can any of the company-specific risk be diversified away by investing in both CJ Seafood 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 CJ Seafood and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CJ Seafood Corp and Samsung Life, you can compare the effects of market volatilities on CJ Seafood 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 CJ Seafood with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Samsung Life.
Diversification Opportunities for CJ Seafood and Samsung Life
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 011155 and Samsung is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life and CJ Seafood 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 CJ Seafood Corp 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 has no effect on the direction of CJ Seafood i.e., CJ Seafood and Samsung Life go up and down completely randomly.
Pair Corralation between CJ Seafood and Samsung Life
Assuming the 90 days trading horizon CJ Seafood Corp is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, CJ Seafood Corp is 1.38 times less risky than Samsung Life. The stock trades about -0.12 of its potential returns per unit of risk. The Samsung Life is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,530,000 in Samsung Life on August 28, 2024 and sell it today you would earn a total of 1,070,000 from holding Samsung Life or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. Samsung Life
Performance |
| Timeline |
| CJ Seafood Corp |
| Samsung Life |
CJ Seafood and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Samsung Life
The main advantage of trading using opposite CJ Seafood and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood 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.| CJ Seafood vs. Busan Industrial Co | CJ Seafood vs. Busan Ind | CJ Seafood vs. Mirae Asset Daewoo | CJ Seafood vs. UNISEM Co |
| Samsung Life vs. Korea New Network | Samsung Life vs. Dong A Eltek | Samsung Life vs. Dreamus Company | Samsung Life vs. SK Bioscience Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |