Correlation Between Samsung Life and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Inzi 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 Inzi 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Samsung Life and Inzi 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Inzi Display.
Diversification Opportunities for Samsung Life and Inzi Display
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Inzi is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Samsung Life i.e., Samsung Life and Inzi Display go up and down completely randomly.
Pair Corralation between Samsung Life and Inzi Display
Assuming the 90 days trading horizon Samsung Life is expected to generate 2.16 times more return on investment than Inzi Display. However, Samsung Life is 2.16 times more volatile than Inzi Display CoLtd. It trades about 0.09 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.33 per unit of risk. If you would invest 9,910,000 in Samsung Life on August 24, 2024 and sell it today you would earn a total of 550,000 from holding Samsung Life or generate 5.55% 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. Inzi Display CoLtd
Performance |
| Timeline |
| Samsung Life |
| Inzi Display CoLtd |
Samsung Life and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Inzi Display
The main advantage of trading using opposite Samsung Life and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Inzi 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Samsung Life vs. Dongil Metal Co | Samsung Life vs. Lotte Non Life Insurance | Samsung Life vs. CJ Seafood Corp | Samsung Life vs. Youngsin Metal Industrial |
| Inzi Display vs. Korea Real Estate | Inzi Display vs. Korea Ratings Co | Inzi Display vs. IQuest Co | Inzi Display vs. Wonbang Tech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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