Correlation Between Samsung Life and Keum Kang
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Keum Kang 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 Keum Kang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Keum Kang Steel, you can compare the effects of market volatilities on Samsung Life and Keum Kang 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 Keum Kang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Keum Kang.
Diversification Opportunities for Samsung Life and Keum Kang
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Keum is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Keum Kang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keum Kang Steel 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 Keum Kang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keum Kang Steel has no effect on the direction of Samsung Life i.e., Samsung Life and Keum Kang go up and down completely randomly.
Pair Corralation between Samsung Life and Keum Kang
Assuming the 90 days trading horizon Samsung Life is expected to generate 0.96 times more return on investment than Keum Kang. However, Samsung Life is 1.04 times less risky than Keum Kang. It trades about 0.06 of its potential returns per unit of risk. Keum Kang Steel is currently generating about -0.11 per unit of risk. If you would invest 10,400,000 in Samsung Life on September 3, 2024 and sell it today you would earn a total of 310,000 from holding Samsung Life or generate 2.98% 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. Keum Kang Steel
Performance |
| Timeline |
| Samsung Life |
| Keum Kang Steel |
Samsung Life and Keum Kang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Keum Kang
The main advantage of trading using opposite Samsung Life and Keum Kang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Keum Kang 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 Keum Kang will offset losses from the drop in Keum Kang's long position.| Samsung Life vs. Dongil Metal Co | Samsung Life vs. Tuksu Engineering ConstructionLtd | Samsung Life vs. Daiyang Metal Co | Samsung Life vs. Seohee Construction Co |
| Keum Kang vs. Tway Air Co | Keum Kang vs. Wave Electronics Co | Keum Kang vs. Anam Electronics Co | Keum Kang vs. UJU Electronics 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |