Correlation Between Sajo Seafood and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Sajo 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 Sajo 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 Sajo Seafood and Samsung Life Insurance, you can compare the effects of market volatilities on Sajo 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 Sajo Seafood with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sajo Seafood and Samsung Life.
Diversification Opportunities for Sajo Seafood and Samsung Life
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sajo and Samsung is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sajo Seafood 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 Sajo 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 Sajo Seafood 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 Sajo Seafood i.e., Sajo Seafood and Samsung Life go up and down completely randomly.
Pair Corralation between Sajo Seafood and Samsung Life
Assuming the 90 days trading horizon Sajo Seafood is expected to generate 2.47 times more return on investment than Samsung Life. However, Sajo Seafood is 2.47 times more volatile than Samsung Life Insurance. It trades about 0.21 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about -0.04 per unit of risk. If you would invest 449,000 in Sajo Seafood on November 3, 2024 and sell it today you would earn a total of 119,000 from holding Sajo Seafood or generate 26.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sajo Seafood vs. Samsung Life Insurance
Performance |
| Timeline |
| Sajo Seafood |
| Samsung Life Insurance |
Sajo Seafood and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sajo Seafood and Samsung Life
The main advantage of trading using opposite Sajo Seafood and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sajo 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.| Sajo Seafood vs. Ssangyong Information Communication | Sajo Seafood vs. Echomarketing CoLtd | Sajo Seafood vs. Dongbang Transport Logistics | Sajo Seafood vs. Hanwha Life Insurance |
| Samsung Life vs. Seoul Electronics Telecom | Samsung Life vs. Daejoo Electronic Materials | Samsung Life vs. Lotte Data Communication | Samsung Life vs. Mobileleader CoLtd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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