Correlation Between Samsung Life and Hyundai
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Hyundai 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 Life and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Hyundai Motor Co, you can compare the effects of market volatilities on Samsung Life and Hyundai 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 Life with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Hyundai.
Diversification Opportunities for Samsung Life and Hyundai
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Hyundai is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Samsung Life 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 Life are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Samsung Life i.e., Samsung Life and Hyundai go up and down completely randomly.
Pair Corralation between Samsung Life and Hyundai
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.1 times more return on investment than Hyundai. However, Samsung Life is 1.1 times more volatile than Hyundai Motor Co. It trades about 0.02 of its potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.02 per unit of risk. If you would invest 10,390,000 in Samsung Life on August 29, 2024 and sell it today you would earn a total of 510,000 from holding Samsung Life or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life vs. Hyundai Motor Co
Performance |
| Timeline |
| Samsung Life |
| Hyundai Motor |
Samsung Life and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Hyundai
The main advantage of trading using opposite Samsung Life and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| Samsung Life vs. Wireless Power Amplifier | Samsung Life vs. LB Investment | Samsung Life vs. LG Chemicals | Samsung Life vs. Korea Investment Holdings |
| Hyundai vs. Hyundai Motor Co | Hyundai vs. Busan Industrial Co | Hyundai vs. Busan Ind | Hyundai vs. Mirae Asset Daewoo |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |