Correlation Between Samsung Life and Korea New
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Korea New 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 Korea New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Korea New Network, you can compare the effects of market volatilities on Samsung Life and Korea New 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 Korea New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Korea New.
Diversification Opportunities for Samsung Life and Korea New
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Korea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Korea New Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea New Network 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 Korea New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea New Network has no effect on the direction of Samsung Life i.e., Samsung Life and Korea New go up and down completely randomly.
Pair Corralation between Samsung Life and Korea New
If you would invest 0.00 in Korea New Network on January 24, 2025 and sell it today you would earn a total of 0.00 from holding Korea New Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Samsung Life vs. Korea New Network
Performance |
| Timeline |
| Samsung Life |
| Korea New Network |
Risk-Adjusted Performance
Weak
Weak | Strong |
Samsung Life and Korea New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Korea New
The main advantage of trading using opposite Samsung Life and Korea New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Korea New 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 Korea New will offset losses from the drop in Korea New's long position.| Samsung Life vs. Silicon2 Co | Samsung Life vs. Kyung In Synthetic Corp | Samsung Life vs. Youngsin Metal Industrial | Samsung Life vs. Daedong Metals Co |
| Korea New vs. Next Entertainment World | Korea New vs. ChipsMedia | Korea New vs. Miwon Chemicals Co | Korea New vs. Jeil Steel Mfg |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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