Correlation Between Sambo Corrugated and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Sambo Corrugated 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 Sambo Corrugated and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sambo Corrugated Board and Samsung Life Insurance, you can compare the effects of market volatilities on Sambo Corrugated 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 Sambo Corrugated with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sambo Corrugated and Samsung Life.
Diversification Opportunities for Sambo Corrugated and Samsung Life
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sambo and Samsung is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sambo Corrugated Board 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 Sambo Corrugated 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 Sambo Corrugated Board 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 Sambo Corrugated i.e., Sambo Corrugated and Samsung Life go up and down completely randomly.
Pair Corralation between Sambo Corrugated and Samsung Life
Assuming the 90 days trading horizon Sambo Corrugated Board is expected to generate 0.31 times more return on investment than Samsung Life. However, Sambo Corrugated Board is 3.19 times less risky than Samsung Life. It trades about -0.2 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about -0.2 per unit of risk. If you would invest 826,000 in Sambo Corrugated Board on October 21, 2024 and sell it today you would lose (19,000) from holding Sambo Corrugated Board or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sambo Corrugated Board vs. Samsung Life Insurance
Performance |
| Timeline |
| Sambo Corrugated Board |
| Samsung Life Insurance |
Sambo Corrugated and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sambo Corrugated and Samsung Life
The main advantage of trading using opposite Sambo Corrugated and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sambo Corrugated 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.| Sambo Corrugated vs. Samsung Life Insurance | Sambo Corrugated vs. DoubleU Games Co | Sambo Corrugated vs. V One Tech Co | Sambo Corrugated vs. Hana Financial |
| Samsung Life vs. Display Tech Co | Samsung Life vs. SungMoon Electronics Co | Samsung Life vs. Vissem Electronics Co | Samsung Life vs. Iljin Display |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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