Correlation Between Samsung Life and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Pureun Mutual 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 Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Pureun Mutual Savings, you can compare the effects of market volatilities on Samsung Life and Pureun Mutual 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 Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Pureun Mutual.
Diversification Opportunities for Samsung Life and Pureun Mutual
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Pureun is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings 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 Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Samsung Life i.e., Samsung Life and Pureun Mutual go up and down completely randomly.
Pair Corralation between Samsung Life and Pureun Mutual
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.28 times more return on investment than Pureun Mutual. However, Samsung Life is 1.28 times more volatile than Pureun Mutual Savings. It trades about 0.03 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about -0.06 per unit of risk. If you would invest 8,140,000 in Samsung Life on November 3, 2024 and sell it today you would earn a total of 770,000 from holding Samsung Life or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life vs. Pureun Mutual Savings
Performance |
| Timeline |
| Samsung Life |
| Pureun Mutual Savings |
Samsung Life and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Pureun Mutual
The main advantage of trading using opposite Samsung Life and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Samsung Life vs. Hanwha Life Insurance | Samsung Life vs. Dongbu Insurance Co | Samsung Life vs. Iljin Display | Samsung Life vs. LG Display Co |
| Pureun Mutual vs. Seoam Machinery Industry | Pureun Mutual vs. Samsung Publishing Co | Pureun Mutual vs. Hyundai Green Food | Pureun Mutual vs. Neungyule Education |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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