Correlation Between Dongil Steel and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Dongil Steel 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 Dongil Steel and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Steel Co and Samsung Life Insurance, you can compare the effects of market volatilities on Dongil Steel 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 Dongil Steel with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Steel and Samsung Life.
Diversification Opportunities for Dongil Steel and Samsung Life
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongil and Samsung is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Steel 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 Dongil Steel 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 Dongil Steel 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 Dongil Steel i.e., Dongil Steel and Samsung Life go up and down completely randomly.
Pair Corralation between Dongil Steel and Samsung Life
Assuming the 90 days trading horizon Dongil Steel Co is expected to under-perform the Samsung Life. In addition to that, Dongil Steel is 1.81 times more volatile than Samsung Life Insurance. It trades about -0.01 of its total potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.06 per unit of volatility. If you would invest 6,764,681 in Samsung Life Insurance on September 3, 2024 and sell it today you would earn a total of 3,945,319 from holding Samsung Life Insurance or generate 58.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Steel Co vs. Samsung Life Insurance
Performance |
| Timeline |
| Dongil Steel |
| Samsung Life Insurance |
Dongil Steel and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Steel and Samsung Life
The main advantage of trading using opposite Dongil Steel and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Steel 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.| Dongil Steel vs. Korean Reinsurance Co | Dongil Steel vs. Dongbang Ship Machinery | Dongil Steel vs. Haitai Confectionery Foods | Dongil Steel vs. Seoam Machinery Industry |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |