Correlation Between Seoyon Topmetal and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Seoyon Topmetal 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 Seoyon Topmetal and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoyon Topmetal Co and Samsung Life Insurance, you can compare the effects of market volatilities on Seoyon Topmetal 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 Seoyon Topmetal with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoyon Topmetal and Samsung Life.
Diversification Opportunities for Seoyon Topmetal and Samsung Life
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seoyon and Samsung is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Seoyon Topmetal 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 Seoyon Topmetal 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 Seoyon Topmetal 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 Seoyon Topmetal i.e., Seoyon Topmetal and Samsung Life go up and down completely randomly.
Pair Corralation between Seoyon Topmetal and Samsung Life
Assuming the 90 days trading horizon Seoyon Topmetal Co is expected to generate 0.64 times more return on investment than Samsung Life. However, Seoyon Topmetal Co is 1.56 times less risky than Samsung Life. It trades about 0.15 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about -0.12 per unit of risk. If you would invest 347,000 in Seoyon Topmetal Co on October 17, 2024 and sell it today you would earn a total of 12,500 from holding Seoyon Topmetal Co or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoyon Topmetal Co vs. Samsung Life Insurance
Performance |
| Timeline |
| Seoyon Topmetal |
| Samsung Life Insurance |
Seoyon Topmetal and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoyon Topmetal and Samsung Life
The main advantage of trading using opposite Seoyon Topmetal and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoyon Topmetal 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.| Seoyon Topmetal vs. Woori Technology Investment | Seoyon Topmetal vs. Sangsangin Investment Securities | Seoyon Topmetal vs. DataSolution | Seoyon Topmetal vs. Ssangyong Information Communication |
| Samsung Life vs. Shinhan Inverse Copper | Samsung Life vs. Seoyon Topmetal Co | Samsung Life vs. Duksan Hi Metal | Samsung Life vs. Innowireless 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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