Correlation Between Samsung Life and Vitzro Tech
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Vitzro Tech 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 Vitzro Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Vitzro Tech Co, you can compare the effects of market volatilities on Samsung Life and Vitzro Tech 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 Vitzro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Vitzro Tech.
Diversification Opportunities for Samsung Life and Vitzro Tech
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Vitzro is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Vitzro Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitzro Tech 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 Vitzro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitzro Tech has no effect on the direction of Samsung Life i.e., Samsung Life and Vitzro Tech go up and down completely randomly.
Pair Corralation between Samsung Life and Vitzro Tech
Assuming the 90 days trading horizon Samsung Life is expected to under-perform the Vitzro Tech. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Life is 1.43 times less risky than Vitzro Tech. The stock trades about -0.55 of its potential returns per unit of risk. The Vitzro Tech Co is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 671,000 in Vitzro Tech Co on October 26, 2024 and sell it today you would earn a total of 109,000 from holding Vitzro Tech Co or generate 16.24% 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. Vitzro Tech Co
Performance |
| Timeline |
| Samsung Life |
| Vitzro Tech |
Samsung Life and Vitzro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Vitzro Tech
The main advantage of trading using opposite Samsung Life and Vitzro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Vitzro Tech 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 Vitzro Tech will offset losses from the drop in Vitzro Tech's long position.| Samsung Life vs. HB Technology TD | Samsung Life vs. BIT Computer Co | Samsung Life vs. Air Busan Co | Samsung Life vs. Jeju Air Co |
| Vitzro Tech vs. Samsung Electronics Co | Vitzro Tech vs. Samsung Electronics Co | Vitzro Tech vs. KB Financial Group | Vitzro Tech vs. Shinhan Financial Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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