Correlation Between Samsung Life and Elentec
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Elentec 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 Elentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Elentec Co, you can compare the effects of market volatilities on Samsung Life and Elentec 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 Elentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Elentec.
Diversification Opportunities for Samsung Life and Elentec
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Elentec is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Elentec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elentec 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 Elentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elentec has no effect on the direction of Samsung Life i.e., Samsung Life and Elentec go up and down completely randomly.
Pair Corralation between Samsung Life and Elentec
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.0 times more return on investment than Elentec. However, Samsung Life is 1.0 times less risky than Elentec. It trades about 0.08 of its potential returns per unit of risk. Elentec Co is currently generating about -0.18 per unit of risk. If you would invest 9,720,000 in Samsung Life on September 2, 2024 and sell it today you would earn a total of 990,000 from holding Samsung Life or generate 10.19% 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. Elentec Co
Performance |
| Timeline |
| Samsung Life |
| Elentec |
Samsung Life and Elentec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Elentec
The main advantage of trading using opposite Samsung Life and Elentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Elentec 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 Elentec will offset losses from the drop in Elentec's long position.| Samsung Life vs. HJ ShipBuilding Construction | Samsung Life vs. Woori Technology Investment | Samsung Life vs. SEOJEON ELECTRIC MACHINERY | Samsung Life vs. SV Investment |
| Elentec vs. Korea New Network | Elentec vs. ICD Co | Elentec vs. DYPNF CoLtd | Elentec vs. Busan Industrial 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |