Correlation Between Samsung Life and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Iljin Display 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 Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Iljin Display, you can compare the effects of market volatilities on Samsung Life and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Iljin Display.
Diversification Opportunities for Samsung Life and Iljin Display
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Iljin is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Samsung Life i.e., Samsung Life and Iljin Display go up and down completely randomly.
Pair Corralation between Samsung Life and Iljin Display
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.08 times more return on investment than Iljin Display. However, Samsung Life is 1.08 times more volatile than Iljin Display. It trades about 0.07 of its potential returns per unit of risk. Iljin Display is currently generating about -0.04 per unit of risk. If you would invest 7,600,000 in Samsung Life on August 29, 2024 and sell it today you would earn a total of 2,860,000 from holding Samsung Life or generate 37.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life vs. Iljin Display
Performance |
| Timeline |
| Samsung Life |
| Iljin Display |
Samsung Life and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Iljin Display
The main advantage of trading using opposite Samsung Life and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display'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 |
| Iljin Display vs. LG Display Co | Iljin Display vs. Organic Special Pet | Iljin Display vs. Display Tech Co | Iljin Display vs. ABOV Semiconductor 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |