Correlation Between Samsung Card and DB Insurance
Can any of the company-specific risk be diversified away by investing in both Samsung Card and DB Insurance 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 Samsung Card and DB Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and DB Insurance Co, you can compare the effects of market volatilities on Samsung Card and DB Insurance 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 Samsung Card with a short position of DB Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and DB Insurance.
Diversification Opportunities for Samsung Card and DB Insurance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and 005830 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and DB Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Insurance and Samsung Card 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 Samsung Card Co are associated (or correlated) with DB Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Insurance has no effect on the direction of Samsung Card i.e., Samsung Card and DB Insurance go up and down completely randomly.
Pair Corralation between Samsung Card and DB Insurance
Assuming the 90 days trading horizon Samsung Card is expected to generate 1.06 times less return on investment than DB Insurance. But when comparing it to its historical volatility, Samsung Card Co is 1.58 times less risky than DB Insurance. It trades about 0.07 of its potential returns per unit of risk. DB Insurance Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,585,297 in DB Insurance Co on November 27, 2024 and sell it today you would earn a total of 3,214,703 from holding DB Insurance Co or generate 48.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Card Co vs. DB Insurance Co
Performance |
| Timeline |
| Samsung Card |
| DB Insurance |
Samsung Card and DB Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and DB Insurance
The main advantage of trading using opposite Samsung Card and DB Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, DB Insurance 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 DB Insurance will offset losses from the drop in DB Insurance's long position.| Samsung Card vs. UJU Electronics Co | Samsung Card vs. Daesung Hi Tech Co | Samsung Card vs. Sangshin Electronics Co | Samsung Card vs. DAEDUCK ELECTRONICS CoLtd |
| DB Insurance vs. Cots Technology Co | DB Insurance vs. Aprogen Healthcare Games | DB Insurance vs. Infinitt Healthcare Co | DB Insurance vs. LG Household Healthcare |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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