Correlation Between Samsung Life and Y Optics
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Y Optics 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 Y Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Y Optics Manufacture Co, you can compare the effects of market volatilities on Samsung Life and Y Optics 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 Y Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Y Optics.
Diversification Opportunities for Samsung Life and Y Optics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and 066430 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Y Optics Manufacture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y Optics Manufacture 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 Y Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y Optics Manufacture has no effect on the direction of Samsung Life i.e., Samsung Life and Y Optics go up and down completely randomly.
Pair Corralation between Samsung Life and Y Optics
Assuming the 90 days trading horizon Samsung Life is expected to generate 2.1 times more return on investment than Y Optics. However, Samsung Life is 2.1 times more volatile than Y Optics Manufacture Co. It trades about -0.02 of its potential returns per unit of risk. Y Optics Manufacture Co is currently generating about -0.35 per unit of risk. If you would invest 10,340,000 in Samsung Life on September 12, 2024 and sell it today you would lose (290,000) from holding Samsung Life or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life vs. Y Optics Manufacture Co
Performance |
| Timeline |
| Samsung Life |
| Y Optics Manufacture |
Samsung Life and Y Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Y Optics
The main advantage of trading using opposite Samsung Life and Y Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Y Optics 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 Y Optics will offset losses from the drop in Y Optics' long position.| Samsung Life vs. Innowireless Co | Samsung Life vs. Polaris Office Corp | Samsung Life vs. Hyundai Home Shopping | Samsung Life vs. Echomarketing CoLtd |
| Y Optics vs. Automobile Pc | Y Optics vs. Jeil Steel Mfg | Y Optics vs. Daelim Trading Co | Y Optics vs. Hankuk Steel Wire |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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