Correlation Between Samsung Life and Q Capital
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Q Capital 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 Q Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Q Capital Partners, you can compare the effects of market volatilities on Samsung Life and Q Capital 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 Q Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Q Capital.
Diversification Opportunities for Samsung Life and Q Capital
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and 016600 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Q Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q Capital Partners 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 Q Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q Capital Partners has no effect on the direction of Samsung Life i.e., Samsung Life and Q Capital go up and down completely randomly.
Pair Corralation between Samsung Life and Q Capital
If you would invest 0.00 in Q Capital Partners on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Q Capital Partners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Samsung Life vs. Q Capital Partners
Performance |
| Timeline |
| Samsung Life |
| Q Capital Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Life and Q Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Q Capital
The main advantage of trading using opposite Samsung Life and Q Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Q Capital 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 Q Capital will offset losses from the drop in Q Capital's long position.| Samsung Life vs. MediaZen | Samsung Life vs. Kukil Metal Co | Samsung Life vs. Korea Information Communications | Samsung Life vs. SAMG Entertainment Co |
| Q Capital vs. Hankook Furniture Co | Q Capital vs. PJ Metal Co | Q Capital vs. Hyunwoo Industrial Co | Q Capital vs. Kukil Metal Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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