Correlation Between Samsung Life and SPG
Can any of the company-specific risk be diversified away by investing in both Samsung Life and SPG 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 SPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and SPG Co, you can compare the effects of market volatilities on Samsung Life and SPG 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 SPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and SPG.
Diversification Opportunities for Samsung Life and SPG
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and SPG is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and SPG Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPG Co 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 SPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPG Co has no effect on the direction of Samsung Life i.e., Samsung Life and SPG go up and down completely randomly.
Pair Corralation between Samsung Life and SPG
Assuming the 90 days trading horizon Samsung Life is expected to generate 0.84 times more return on investment than SPG. However, Samsung Life is 1.19 times less risky than SPG. It trades about 0.11 of its potential returns per unit of risk. SPG Co is currently generating about 0.09 per unit of risk. If you would invest 9,110,000 in Samsung Life on November 18, 2024 and sell it today you would earn a total of 550,000 from holding Samsung Life or generate 6.04% 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. SPG Co
Performance |
| Timeline |
| Samsung Life |
| SPG Co |
Samsung Life and SPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and SPG
The main advantage of trading using opposite Samsung Life and SPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, SPG 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 SPG will offset losses from the drop in SPG's long position.| Samsung Life vs. Asiana Airlines | Samsung Life vs. ADTechnology CoLtd | Samsung Life vs. Hotel Shilla Co | Samsung Life vs. Puloon Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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